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Question :
What is an Insurance Broker?
Answer :

An Insurance Broker is an entity that provides brokering services in regards to insurance coverage and helps in handling claims acting on behalf of the insured/ policy holder.

An Insurance Broker also acts as insurance consultants that could be expanded to a risk management consultant for the Insured.



Question :
What are the benefits of using an insurance broker?
Answer :

An insurance broker provides suggestions for optimal insurance coverage for the insured, by way of coverage not being over insured or in the other hand under-insured, hence premium paid by the insured would reflect the risks.

Documents handling and claim procedures would usually take time and effort to do. This is where an insurance broker performs its duties to aid claims processes and its handling so that the insured is relieved of the pressure with dealing wit claims. 

Question :
Where does an insurance broker attains its professional fees?
Answer :

An insurance broker in its basic functions performs processes that are done by most insurance companies to attain businesses. Hence insurance companies would only have little or no acquisition expenses and also there is no risk on the insurer on the expenses paid where potential insured did not go ahead with the coverage. This is due to those expenses has already been passed to the broker. Hence it is in accordance with the philosophy that insurance companies would provide a "fee" that is in line with the investment and expenses passed to the broker.

In almost all cases of insurance coverage done through a broker, the insured or policy holder does not have the burden to pay a fee from the broker's services.


Question :
What differs an insurance broker with an insurance agent?
Answer :

An insurance broker is set up through sets of dilligent and strict regulations under the watchful eyes of Ministry of Finance with the aim to protect the general people. An insurance broker acts on behalf of the insured. 

Whereas an insurance agent acts on behalf of the insurance company he/she works for, and therefore could only be an agent of 1(one) insurance company. This is further strengthened by Insurance Regulations No. 2 Year 1992.

An insurance broker is free to choose whichever insurance company in order to place its insured's risks.


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