There are many workers in the insurance sector. An insurance broker is a legal entity or an individual engaged in professional activities on his own behalf, but representing an insurer company. To obtain a license, registration and registration of a business permit is required. Insurance brokers help to conclude deals. This means that such specialists are in demand. Their work is described in the article.
The concept
An insurance broker is a specialist who is considered an intermediary between a company and a client who wants to use the services. He is not responsible for the further activities of insurers, their financial condition, and compensation for losses. The main duty of the employee is considered to be the selection for the client of the best version of the contract from the company.
At the same time, a broker is an independent insurance worker who is considered independent. Therefore, he is a representative of each of the parties. But to protect the interests of both parties he is forbidden.
The specialist should be knowledgeable in the field of insurance. And yet he is not considered responsible for the further work of the company with which he collaborates. The broker must be licensed in order to be able to carry out this work. It is issued by a special Federal Service. It can be a legal entity or an individual. This does not affect his activities.
Services
Insurance brokers attract customers to firms. He is doing maintenance work. They are also provided with the following services:
- Counseling, explanation of the various nuances of insurance.
- Search for a company that provides favorable conditions.
- Creating an insurance product suitable for the client.
- Preparation of documents for registration of the agreement.
- Paperwork for payments.
- Organization of the payment process.
- Risk calculations.
- Escort of clients to completion of the process if an insured event occurs.
- Collection of contributions, if the broker is considered a legal entity.
After the occurrence of insured events, insurance brokers are also required. The reviews confirm that they help to deal with all the nuances of the transaction. If you find a real professional, it will turn out to be beneficial to issue an insurance policy.
Credentials
The activities of insurance brokers are associated with attracting customers, for which they receive a reward. Commissions are often quite large. This is due to the fact that insurers in contracts do not always indicate the costs of paperwork and the search for new customers.
- In European countries, determine the amount of commission for brokers based on the service. In this situation, the reward may be 10-25% of the transaction amount. But there are cases when it is more than 30-35%.
- In Russia, the average rate for a completed transaction is 20%.
The main task is the selection for each client of individual conditions for concluding an agreement. Brokers formulate the wishes of the person and look for suitable programs. A specialist may have several experts on staff to carry out market research.
The specialist is engaged in escorting the client during the insured event. This is the difference from the agent, whose powers expire upon signing the agreement. Many companies train specialists by introducing them to insurance products. They can also conduct other activities related to this area.
Working conditions
The insurance broker in insurance has a free schedule. If he is not satisfied with the income, then there is the possibility of combining it.There are no restrictions on earnings. The level of income depends on the number of transactions.
Negative sides:
- Although a specialist may have a free schedule, he still works at a time when it is convenient for customers. It turns out that the employee can work on weekends, holidays.
- There is no stable income. The amount is determined by the number of customers and executed transactions.
- There are no social guarantees, paid leave, sick leave.
In our country, an insurance broker OSAGO or CASCO is considered a rarity. Finding a true professional is not so easy. The insurance market is only developing. The broker association needed for management speeds up the process. The site of this institution has a list of brokers who have a license to work. There is also contact information.
Qualities
The responsibility of the insurance broker is the need for competent execution of the transaction. It is the responsibility of the employee to communicate with customers. Therefore, in addition to professional qualities, a person must have data from a psychologist. It is important for him to observe people, be able to listen to them, remember important information, process them. The better he learns the client, the greater the chance of a deal.
In this work, it is almost impossible to prevent conflicts. A person must have a strong nervous system, resistance to stress. Sociability and presentability will not hurt, since the first impression is formed from these factors. Only with these qualities can a person work in this position.
Who should contact a broker?
Making an insurance policy through a broker is more profitable for residents of large cities. To choose a profitable option, especially if you need to purchase CASCO, real estate insurance, business, customers need to familiarize themselves with the terms of several companies. It takes a lot of time and effort. It is much more convenient to contact a broker, where in one visit you can find out information about several companies:
- Perform policy price calculation.
- Read the terms.
- Get data on discounts, promotions.
- Learn about the work of the company of interest.
Based on this information, you can make the right choice and draw up a contract. Therefore, the work of a broker often becomes useful, especially if it is difficult for a person to choose a company and insurance program.
The benefits of a broker
- Reliable brokerage companies have a highly professional staff of employees who know the intricacies and conditions of insurance of partner firms. They can navigate a variety of offers and choose the most suitable program for the client.
- Professional brokers with many clients have a serious impact on insurers. They can protect the rights of clients in disputes.
- Brokers offer a discount due to their commission.
But there are not so many good employees in this area. Most of them work for profit, and there is no benefit for the client from this.
disadvantages
- Finding a true professional is difficult. Now there are many agencies in which the so-called insurance brokers work. However, they may not have a license to carry out this activity.
- There is a possibility of cooperation with scammers.
- Typically, brokers offer the services of those companies that provide more favorable conditions for cooperation. However, they can offer a discount. So the client may suffer financially, as many insurers pay intermediaries high remuneration due to the likelihood of bankruptcy.
- Incompetent brokers may not be aware of promotions and discounts in companies.
Thus, insurance brokers do important work. They are able to help customers in choosing services and issuing policies. The main thing is to find a true professional.