03/06/2024
What is an insurance broker?
If you’re not sure what an insurance broker is or what one does, you’ve come to the right place. In this article, we answer your commonly asked questions about the industry and how it works.
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- What is an insurance broker?
- What is an independent insurance broker?
- What does an insurance broker do?
- How do insurance brokers work?
- What is the difference between an insurance broker and an insurance company?
- Why use an insurance broker?
- Do I need an insurance broker?
- What are the benefits of using an insurance broker?
- Do insurance brokers get better rates?
- Do insurance brokers help with claims?
- How much does an insurance broker cost?
- How to find a good insurance broker
- Are insurance brokers regulated?
What is an insurance broker?
An insurance broker is an individual dedicated to finding appropriate insurance for your needs at the best price. They typically work for an insurance broking company but may be self-employed.
Brokers may handle Business or Personal Insurance, or both. Some specialist insurance brokers also focus on particular sectors. At One Broker, we cover all three.
What is an independent insurance broker?
It’s important to note that not all brokers are independent. They may be owned by another company or have special relationships with particular insurers. As a result, they may not search the whole market to find the best policy for you.
An independent insurance broker, such as One Broker, isn’t tied to a particular insurance company. They have access to policies from a wide range of insurers.
What does an insurance broker do?
A broker’s primary responsibility is sourcing the right policy at the right price. At One Broker, we do this by building strong relationships with our clients.
After assessing your needs, we use our knowledge and experience to find the right policy for you – negotiating with insurers where necessary – saving you time and money. We take the time to interpret insurers’ complicated policy wordings too, making them easier to understand.
We also support the claims process. Our in-house Claims team acts on your behalf, helping you achieve an appropriate settlement. In fact, we have delegated authority with some insurers. That means we can settle many cases without waiting for an insurer’s decision, so your claim is resolved faster.
How do insurance brokers work?
They will initially discuss your needs, whether you’re an individual buying insurance for yourself or you’re arranging a policy on behalf of an organisation.
The broker will identify your key areas of risk and pinpoint insurance policies to cover them, so you have suitable protection. An independent insurance broker will search the market for you, using their relationships with insurers and underwriters to find exactly the right policy. They will take your budget into consideration during this process.
What is the difference between an insurance broker and an insurance company?
Because they work for you. They are familiar with the insurance industry and ensure you get the most suitable insurance protection for your needs.
Why use an insurance broker?
Because they work for you. They are familiar with the insurance industry and ensure you get the most suitable insurance protection for your needs.
Do I need an insurance broker?
By law, you don’t need to appoint an insurance broker to arrange a policy. In many cases, you can arrange insurance directly with an insurer, either over the telephone or online. However, it can be beneficial to work with an insurance broker. Thanks to their knowledge of the insurance market and the policies available, they are able to source policies from suppliers that you may not have access to.
In addition, they understand the risks you face and the possible financial impact of something going wrong, so they will arrange a suitable level of protection, so you’re not underinsured.
What are the benefits of using an insurance broker?
Unlike a price comparison site, you get personalised insurance advice from a real person. We’ll get to know you and your needs, ensuring that you're not over- or underinsured. We also have strong relationships with major insurers, which means we can negotiate better prices on your behalf.
Do insurance brokers get better rates?
In many cases, yes. They are not only able to find the right value policy for you, but they may even be able to combine different types of policies to really tailor the protection to your needs.
In addition, they can often negotiate better rates, thanks to their insurer relationships or the amount of business they can offer to an insurer. If a broker places a lot of one particular type of policy with an insurer, they may be able to secure bulk discounts.
Do insurance brokers help with claims?
Some do. Here at One Broker, we have our own Claims team to guide you through the process. We know that making an insurance claim can be a stressful experience, so our team will ensure that you supply the information that the insurer needs to process the claim.
In some cases, our team has ‘delegated authority’. This means we have the power to process the claim without referring to the insurer, so a resolution is decided more quickly.
How much does an insurance broker cost?
The cost of working with an insurance broker is affected by several factors. These include the type of insurance policy you're seeking and the agreement you've made regarding payment for their services. Brokers may charge you a fee directly, or they might receive a commission from the insurer. As a result, the specific cost will vary.
How to find a good insurance broker
A simple Google search for the term ‘insurance broker’ will bring up a long list of options. Be sure to check that they are registered with the Financial Conduct Authority (FCA), so you know they’re legitimate. Also, it means you can be confident you are working with a firm who will treat customers fairly, provide advice on insurance products suitable for you and communicate with you in a clear and transparent way.
Wherever possible, check their reviews and testimonials, especially in the area of insurance you need.
Are insurance brokers regulated?
Yes. Legitimate insurance brokers are regulated by the Financial Conduct Authority (FCA). This means that they are audited and monitored to ensure their clients are treated fairly. You can check a company’s status on the FCA website using either their name or reference number. This can typically be found on their official documentation, advertising materials or website.
Why choose One Broker?
We’re an established insurance broker able to arrange both personal and commercial insurance. Like many national brokers, we also offer specialist schemes for niche markets. We currently work with: tenant management organisations, housing cooperatives, classic vehicle owners, private ambulance companies and motorcycle dealerships to name a few.
Find out more about the specialist sectors we work with.
As we’ve grown, we’ve stayed true to our values, putting the customer at the heart of the business. That’s why we have a strong commitment to training and development, encouraging everyone to achieve and maintain professional qualifications.
By staying up to date with the latest industry developments and best practices, we ensure that you receive the best possible service.
Talk to us about your insurance needs
If you’d like to discuss your insurance needs, we’re happy to help! Head over to our dedicated web pages on Personal Insurance and Business Insurance to learn more.
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