What is the role of an insurance broker?

In the financial services industry, there are many different career routes to choose from. If you’re looking for more information on the role of an insurance broker, we can help. In this blog, we explain exactly what they do and look at different variants of this profession.

What exactly does an insurance broker do?

An insurance broker helps clients to find the best insurance provider for them, offering tips and guidance based on their knowledge of the different benefits and policies various insurance companies offer. They essentially act as the go-between for clients and insurers.

Although the role of insurance broker is based around the sole aim of finding suitable insurance packages for individuals and companies, there are other tasks that they are required to carry out too. These include:

• advising clients on how they can become eligible for certain insurance packages
• building an understanding of a client’s wants and needs
• carry out administrative tasks
• conducting extensive research into insurers and their packages
• helping clients make insurance claims
• identifying key opportunities for offering different types of advice and adding policies onto existing insurance packages
• maintaining an understanding of current insurance standards
• offering expert to clients
• working alongside other professionals on the behalf of clients.

As there are different types of insurance, some insurance brokers may choose to specialise in certain areas while others may provide knowledgeable, expert guidance on a range of products such as life, car, pet or travel insurance and much more. Below, we’ve outlined some of the roles of an insurance broker to explain exactly what they mean and how they differ:

What is a commercial insurance broker?

An insurance broker offers two types of insurance brokerage for business – retail and commercial. Retail insurance brokerage focuses on finding essential coverage for retail businesses, which can include general liability, product liability and commercial property insurance. On the other hand, commercial insurance, often referred to as wholesale insurance, is designed for businesses requiring coverage across their entire franchise. For instance, if a company faces multiple risks to its employees, the insurance would be structured to cover each staff member under a comprehensive package from a single provider.

What is an independent insurance broker?

Some insurance brokers are owned by specific companies and banks, or have ties to a particular insurance provider. An independent insurance broker isn’t affiliated with any single company or provider, allowing them to offer unbiased advice. It also gives them access to a variety of insurers across the market to find the right option for their clients.

What is a car insurance broker?

A car insurance broker works with their clients to decide on the type of coverage and car insurance they need, and then searches the market to find a great deal. They are not the same as car insurance agents because they don’t represent a specific car insurance company. As car insurance brokers are independent, they can find the package that best suits the client without any bias.  

What is a health insurance broker?

Similar to a car insurance broker, a health insurance broker helps clients to find a health insurance package that works for them. As well as working with individuals to find life or other types of health insurance, brokers may help companies find health insurance for business reasons. Health insurance brokers are independent so can scour the market for the best deal for their client.