An insurance broker is an entity — a company, a cooperative society or an authorized individual — that acts as an intermediary between an insurer and the insured. Possessing ample of knowledge of insurance policies and the current insurance market, an insurance broker partakes in brokering activities such as:
- Advising clients about the current insurance market.
- Assisting the clients choose the insurance policy that fits the client’s requirements
- Helping clients open their E insurance account
- Helping policy holders pay their insurance premiums.
To operate as an insurance broker, you need an insurance broker license. However, when you apply for it, you’d realize that the scope of your functions is larger than the above 4 points.
Thus, in this article, you’d open your eyes to the different functions of an insurance broker as mentioned in the IRDA regulations for an Insurance Broker.
Getting familiarized with the client’s business
One of the main functions of an insurance broker is to make itself familiar with client’s business and the philosophy that he or she has in regards to risk management. This information allows you to serve your client in a precise manner.
Advising client in matters of insurance
As an insurance broker, you’re not merely someone who communicates the terms and conditions of an insurance policy to the client, you are also a translator.
The terms of insurance cover are often filled with legal jargon that escape a laymen’s understanding.
As an insurance broker, you’re an advisor to your client – providing them a detailed information about the insurance cover in an understandable way.
Read Other Useful License: Corporate Agent License
Possessing detailed knowledge of the insurance market
As a holder of an Insurance Broker License, you need to keep yourself updated with the current insurance market. You have to absorb all the knowledge that the market has to provide to effectively serve your client.
Submitting the quotation of the insurer
The insurer that you’re in agreement with – the insurance company – needs you to submit the quotations to the prospect customer.
Providing underwriting information to the insurer
As an advisor to the insurance company you’re associated, it’s your job to provide it underwriting information that can used to decide the pricing terms and conditions of the insurance cover.
Providing progress reports to the client
Your clients – the insured and the insurer – would often have instructions for you that you’d need to promptly act upon. Additionally, it’s your responsibility to provide them with written acknowledgements. Progress reports pertaining to those instructions.
Helping clients with paying premiums
Your client – insured – might need to assistance to pay the insurance premium. In that instance, it falls on your shoulder to provide him with options to easily fulfil the premium requirements.
Acting as a Chief Negotiator
When its time for the insured to lay their insurance claim. It’s your job as an insurance broker to act as a chief negotiator.
Maintaining a proper record for the claims
It’s your responsibility as an insurance broker to maintain a record of all the insurance claims laid by the insured – successfully or otherwise.
As an insurance broker, the scope of your business is wide. It’s all courtesy of the scope of your functionalities.
Make sure that you’re ready to shoulder all the responsibilities mentioned in this blog before choosing the insurance broker license. And when you do, Registrationwala would be ready to assist you.
Before you opt for an insurance broker license, make sure that you know what you’re in for. Here are the different functions of an Insurance Broker (Direct).
Read this blog thoroughly to understand the functionalities that you get equipped to perform once you obtain the Insurance Broker License.