Nowadays, the activity of insurance companies is developing rapidly, and their services are becoming more and more popular. As a scheme to market their products, modern insurance companies use insurance brokers and insurance agents.
What is their difference and who is better to choose?
An insurance agent is a person who represents a company and offers his services to a client.
When a client turns to an insurance broker, he wants to get some advice that competent specialists will give him there. The client seeks certain guarantees and places his hopes in the responsibility of a broker who, among similar companies currently present in the insurance market, will recommend a specific company.
If we compare the activities of an insurance agent and a broker, it is obvious that the broker is an impartial market participant. He represents large companies, in addition, he has all the necessary financial tools for analysis. The broker thoroughly studies all insurance products and provides a suitable one, depending on the client’s requirements.
Agents often work with a single insurance company and represent only their products. Consequently, both the choice and the information provided are very limited in this case.
In fact, the agent network does not offer a choice; As a general rule, it does not offer a comprehensive set of insurance products. At the same time, the insurance broker is aware of his responsibility in choosing the product and its subsequent maintenance.
In this case, we can recommend the following scheme:
- If you clearly know exactly what you need and have not seen a similar product from other companies, you can safely use the services of an insurance agent.
- If you are looking for an insurance product with optimal value for money, it is better to contact a broker.
It should also be remembered that both insurance brokers and insurance agents receive their money only after the conclusion of the transaction. So remember, they both have the same goal of selling you an insurance product.
In any case, so that your expectations of using the insurance correspond to reality and then there are no unnecessary questions and disputes with the insurance company, due to the fact that something was not explained to you, carefully read the insurance contract and all the conditions indicated therein. If the client, when concluding an insurance contract, receives full information about his rights and obligations, and also clearly understands the terms of the contract, all parties will be protected from misunderstandings and misunderstandings in this matter.
Only by increasing your financial and insurance education can you avoid major losses in the future.