Insurance Brokerage Firms by Roberto666Leffel


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									Insurance Brokerage Firms
Insurance brokerage firms play a key role in business development of both life insurance and general
insurance companies. On one hand, they act as intermediary between insurer and client, helping to
assess the client's business and risk profile, and accordingly suggesting appropriate coverage. On
the other hand, they also act to convince the insurer to assume the risk involved in underwriting
particular policies. Although insurance brokerage firms draw their salaries from insurers, a firm's top
priority is to see to the client's interests. Moreover, firms do not charge any commission for services
provided to clients. When a client makes damage claims, the firm interacts on behalf of the client with
surveyors, photographers and structural engineers appointed by the insurer.
The insurance broker also relays data relating to the potential client's business and risk profile to the
technical division of the insurance company. The broker's role may vary according to the size of the
insurance company it serves. For big insurance companies, brokerage firms may operate in
specialized areas, while elsewhere they may be required to look after the entire range of policies that
an insurance company may have to offer.
Insurance brokerage firms are also supposed to manage knowledge and information flow relating to
their clients and the markets in which they operate. Accordingly, they have to maintain detailed
records. Not only that, but they also collate data from other sources and then analyze them to see the
big picture. In addition, they identify new industry trends and developments on the basis of collated
data and evaluate various insurance products on the market.
In many countries, in fact, insurers are already selling their products mainly through brokerage firms.
In other words, brokers have emerged as the sole distributor of policies for the insurance companies
in those countries. Nevertheless, this trend is yet to evolve into a global practice.

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