The Difference Between an Insurance Agent and an Insurance Broker
There are a variety of roles within the Insurance industry, all of which are referred to by different titles. It isn’t uncommon for these to also vary between countries, which makes things even more confusing. In this article we are looking at the Australian Insurance Market and two common terms we are familiar with, an Insurance Agent and an Insurance Broker. In this article we will highlight some of the common differences and where clarity may be required when you are engaging in an insurance discussion.
Who are Insurance Agents?
In Australia, an Insurance Agent is typically an Insurance Advisor that acts on behalf of an Insurance company. This might entail working for an Insurance Company directly, or working for another brand that markets / sells insurance on behalf of one or a variety of Insurance companies. An Insurance Agent is required by law to disclose that they are acting on behalf of an Insurance company and that they can only provide general advice that does not take into account your personal objectives, financial situation or needs. This effectively means that the Insurance Agent may not highlight exclusions or gaps in coverage, differences between their product and other insurance products, or ask the right questions to understand the full extent of the risk. When purchasing from an Insurance Agent, you need to ensure you are familiar with the product, have read the policy wording and are comfortable that that product suits your needs. Once an insurance product has been purchased, the client will often be required to manage their policy and any insurance claims themselves.
Who are Insurance Brokers?
In Australia, an Insurance Broker is a Qualified Insurance Advisor that acts on behalf of their client, the customer. An Insurance Brokers role is to source the most appropriate insurance solution for their client, which can take into account their personal situation, requirements and needs. An Insurance Broker will ask detailed questions to understand their clients insurable risk exposures and present this information to an array of Insurance companies and Underwriting Agencies. Once quotations are received, an Insurance Broker will review the terms and conditions, present the most suitable option to the client and highlight important information that the client should consider. Once a policy has been placed, the Insurance Broker will be a direct point of contact for advice, policy changes and end to end claims management. Having your insurance managed by a Broker is like having your own direct representative.
What is the difference between a Corporate Agent and Insurance Broker?
We have talked about Insurance Agents, but what about a Corporate Agent and how does that differ to an Insurance Broker. Corporate Agents can be Insurance Agents, or they can be Agents that work within similar industries, such as Banking, Finance or Consulting. If you are having a discussion with a Corporate Agent, it is important that you understand their role and their area of expertise. They may not work in the Insurance industry and may not be able to represent you as an Insurance Broker would.
So why Hunter Broking Group as your Insurance Broker?
Hunter Broking Group are General Insurance Brokers based in Graceville, Brisbane. Hunter Broking have over 50 years collective insurance experience, spanning across a wide range of industries and project sizes. We are renowned for being technical and solution focused; taking time to understand the risk appropriately. This focus is evident having received over 70 Google Reviews with a 5 Star Average rating.
Do you want Insurance Broker that genuinely cares about your business?
Do you want an Insurance Broker who you see as a “Partner”, someone that adds value to your business; instead of just another Salesperson?
WE WANT TO HELP YOU navigate the confusing world of insurance & add value to your business.
The products we deal with on a daily basis include Business Insurance, Public Liability Insurance, Professional Indemnity Insurance, Management Liability Insurance, Cyber Insurance, Commercial Motor Insurance and Property Insurance.
If you have any questions, please don’t hesitate to book an appointment with one of our Qualified Advisors.
The information provided by Hunter Broking Group Pty Ltd on this website is for general information purposes only, and it is not a substitute for professional advice. You should always consider the PDS/Policy wording before making a decision. Coverage may differ based on specific clauses in individual policies. Refer to the FSG on our website or by requesting a copy for our services and remuneration details.
This article originally appeared on Hunter Broking Group and has been published here with permission.
Advisr does not provide advice and does not hold a financial service license (AFSL). All information above has been provided by Josh Ryan.