Trusted Insurance Brokers

Trusted Insurance Brokers

“You can’t build a reputation on what you are going to do.” 
― Henry Ford

 

Today, reputations matter more than ever. We know that people only do business with people they trust. Trust is built via our reputations and our how we have delivered in the past. As Ford says, you can’t build a reputation on what you are going to do.

So if reputations matter, then why is it important to be a Trusted Insurance Broker and how can you ensure that you are known this way.

In particular, Insurance Brokers have a massive opportunity to differentiate themselves based on their reputations and on how trusted they can be and through a reputation based on what you have done already.

Why is it important to be a Trusted Insurance Broker?

Insurance is fundamentally about trust. Insurance is a contract that provides security for when risks occur. As customers, we never quite know what our insurance experience will be like until the moment of truth occurs and you seek to make a claim on your insurance policy. It is the future promise of assurance that customers are essentially buying.

Insurance at its core is a promise. As such, customers need to be able to trust insurance brokers when they making insurance purchasing decisions.

If you want to grow your insurance book, then being trusted is critical.

How to be a Trusted Insurance Broker

Understanding how to become a trusted insurance broker is critical. Becoming trusted doesn’t simply happen overnight, trust is built through a consistent and steady approach of saying what you are going to do and then doing what you have said you will do.

So, if you want to grow your insurance book, then being trusted is essential.

What can you do to be a Trusted Insurance Broker?

Here are 7 steps you can take to be a trusted insurance broker.

1: Be transparent

Being transparent with clients is critical. Customers have a great ability to have access to lots of information. So you can build trust through transparency and providing them with all the relevant information that they need to make their decision.

2: Seek public feedback

You reputation is driven by client feedback. Seek client feedback and channels to make it publically available. Clients want to know what it is like to work with you from others that have worked with you.

3: Do what you say you will do

A pretty simple principle, but to ensure you can do what you say you will do, you need to be clear on what you are going to say before you say it. You can start taking small steps on this today. For example, if you say that you’ll call someone at 10am. Call at 10am, not 10:07 etc.

4: Promote client testimonials

Your clients’ testimonials are business-critical assets. Promote their words, not your words and show people what it is like to work with you. Great client testimonials are the output from consistent work for your clients at every step of their process with you. So if you want to generate great client testimonials, then keep that in mind at every stage of your process.

5: Share educational content

Education is the key way of building trust, in particular for a strong digital sales process. We have shared more about how  Education is the key to digital selling for insurance brokers.

Start sharing educational content that solves customers problems. Giving away your expertise enables customers to truly value your skills and understand more about how you operate.

6: Understand first, then look to match to products

As people, we love to be understood. So to build trust with potential clients, spend most of your time seeking to understand what it is they do and how they feel about their needs and requirements. Understanding a client, and checking that you really are understanding them is critical.

Keep asking open questions during your interactions. Such questions could be “tell me more about your business”, “What areas do you feel you need coverage in”, “What would happen if….” and “how does this feel for you?”

7: Be trustworthy

Simply be trustworthy. It is the most valuable business and career asset you can cultivate.

What is the difference between an insurance broker and an insurance agent?

What is the difference between an insurance broker and an insurance agent

What is the difference between an insurance broker and an insurance agent?

Whilst an Insurance Broker and an Insurance Agent sound like very similar terms, in reality, they are vastly different and it is worth understanding the difference to ensure you understand what the underlying motivations are for people who are insurance brokers and who are insurance agents.

What are Insurance Brokers

An insurance broker is an expert in insurance and in mitigating risk. Insurance brokers operate on behalf of their clients and use their insurance expertise to provide insurance advice to their clients.

 

An insurance broker is independent of the insurance product that they are providing you advice on. Sometimes, insurance brokers can operate as an Insurance Agent and in these circumstances, you should be made aware of this and have it fully explained to you. An independent insurance broker enables an insurance broker to source insurance products from various insurers and underwriters that match your risk requirements.

 

Insurance brokers can be experts in a few key types of insurance, eg cyber insurance, workers compensation insurance or aviation insurance or generalists across all business insurance and general insurance.

 

Insurance brokers are well placed to provide you with specific advice regarding risk management. Insurance brokers can also be useful in helping you to decide what insurance you require and how you could manage and mitigate your business risks in other ways.

 

Insurance brokers in Austalia are licensed and required to operate under an Australian Financial Service License (AFSL). You can request an insurance brokers AFSL and check their license with ASIC.

 

Insurance brokers can also be very useful if you need to make a claim on your insurance policy. Insurance brokers have been through the claim process many times and understand the insurance claim process, speed and potential outcomes.

 

What are Insurance Agents

Insurance Agents operate on behalf of insurance companies. Insurance agents are not independent of the insurance company they are an agent of and operate under the Australian Financial Services Licenses (AFSL) of the insurance company that employees them.

 

As such, Insurance Agents are not independent of the products they are offering and need to disclose that they are operating as an insurance agent. Insurance agents typically provide a breadth of insurance products, however, they are from the one company or from aligned insurance companies.

 

Insurance Agents can provide advice on the insurance products they are selling as part of ensuring that the customer understands the product offering and scope.

 

If you are confused, please ask your insurance broker to explain the situation to you.

How do insurance brokers make money?

How Insurance Brokers Make Money
How do insurance brokers make money? It is a great question in a complex market where insurance policy premiums vary greatly based on the different inclusion, exclusions and levels of coverage of the insurance product you end up purchasing.
Insurance brokers can make money in a few different ways. Understanding how an Insurance Broker makes money can help you as you look to find an insurance broker that you can trust.

Commissions paid on policies sold

Insurance brokers can be paid a commission on the insurance policies that they sell. The commissions that are received can be either a once off commission or can remain in effect for the life of the policy. The amount of commission paid as a percentage can vary based on the type of insurance and the size of the policy that has been purchased.

Fee-for-service for advice given

Insurance brokers can operate on a fee-for-service model, where the broker charges the client purchasing a policy a fee that reflects that time and expertise required in analysing what insurance you require, through a form of risk analysis and then sourcing various insurance policies for you to consider and ultimately purchase.

 

Some insurance brokers can call this approach a “broker fee”.

A mix of Commissions and fee-for-service

Insurance brokers can operate under a mixed model where they both receive some commission for the insurance policy being sold and receive funds via a fee-for-service approach. Mixed models can include a “broker fee” as a separate item on your invoice.

 

Ultimately, the key to understanding how insurance brokers make money is that transparency needs to be maintained between the customer and the insurance broker. As a customer, you always have the right to ask your insurance broker how they make money and to ensure that you understand what fees you are paying as a proportion of your total insurance cost.

 

If you are confused, please ask your insurance broker to explain the situation to you.