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FS Apprenticeships

What is the role of an insurance broker?

6 April 2021

An insurance broker providing a client with expert advice.

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 acts as the middleman between clients and insurance providers. Using extensive knowledge of each insurance company, the benefits they offer and the policies they provide, they can help clients to find the best option for them.

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?

For businesses, insurance brokers can offer two services: retail insurance brokerage and commercial insurance brokerage. While retail insurance brokerage offers the necessary coverage for a retail business such as general liability and commercial property insurance, commercial insurance – also known as wholesale insurance – applies to businesses that need coverage that applies to their entire franchise. For example, if a company had multiple potential risks to employees, the insurance would be broken down to cover every member of staff but within an overarching package from a single insurance provider.

What is an independent insurance broker?

In some cases, an insurance broker could work on behalf of a specific company, bank or building society or hold relationships with certain insurance providers. However, an independent insurance broker isn’t tied to any company or insurance provider. Not only does this mean that they’re able to act in an unbiased way, but it also gives them the opportunity to choose from a wider range of insurers.

What is a car insurance broker?

A car insurance broker can offer suitable options to clients looking for the right car insurance deals for them. Sometimes confused with a car insurance agent, the key difference between the two is that a car insurance agent will work on behalf of a car insurance company whereas a car insurance broker will be independent and look to find a package that suits the client based on a wide range of options on the market.

What is a health insurance broker?

Just as a car insurance broker helps clients to find a car insurance provider and package that is right for them, a health insurance broker does the same but with life insurance. Health insurance brokers often help individuals with finding life insurance and other forms of health insurance, but they may also help companies identify similar types of insurance for business reasons. As with many forms of insurance brokers, health insurance brokers work independently and offer options from a selection of insurance providers.

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