An insurance broker is third-party professional adviser who is an expert in insurance and risk management.

Insurance brokers are independent from insurance companies, acting on behalf of their clients. Their duty is to provide services to their clients, allowing an informed decision when purchasing insurance coverage.

What insurance brokers should do:

• Design the right terms and conditions: insurance brokers come across with many losses and claims, and so know how the policy wording is applied and which clauses must be added to make sure the insured can be indemnified in case of a loss.

• Find the right insurer: like in every industry, no insurer is specialized in every business line. No business can, each of them has its own specialty, and brokers are aware of each insurer’s strengths and weaknesses.

• Negotiate with insurers: by approaching many insurers, an insurance broker is in position to collect and compare quotes, to provide to the client the best terms and conditions available in the market.

• Follow up during the policy period: over the time, a company goes through some development such as distribution of new products, change of premises, increase in stock value, etc…. The insurance coverage should follow the business development of company, and brokers make sure any changes in the risk conditions are reported to insurer to avoid being underinsured.

• Assistance in case of loss: the purpose of an insurance company is to provide indemnification in case of loss. Usually, when an accident occurs, there are disruptions in the normal course of the activity and expectations to come back to a normal situation. It’s important to act quickly and in an efficient way to catch up with potential disruptions. An insurance broker is used to dealing with these kinds of situations, he is in position to let the insured know what should be done to make sure the indemnification will go smoothly.

Apart from technical skills, the broker must have excellent communication skills to bridge expectations from clients with requirements from insurance companies, to make sure they have a full understanding of the insurance technical vocabulary and the insurance policy wording.

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