Tài liệu Question about broker: Broker''''s roles in insurance market doc

He or she can then advise you on what risks should be insured against, and then if you agree, the broker will canvass the insurance market to obtain the best insurance protection to meet

BROKER’S ROLES

IN INSURANCE MARKET

Overview

Insurance Market in Vietnam is developing with the economy With the flow of foreign investment, a number of foreign insurance companies were granted business licenses which has created a more competitive environment As an organic part of the market, insurance brokers always play a extremely role in insurance market However, the word

“broker” for almost Vietnamese does not speak much for itself

Followings are some analysis which will give an overview picture of a broker operation in the market and understand why they are indispensable

What do insurance brokers do?

The broker's task is to help you identify the risks that you or your business may be exposed to He or she can then advise you on what risks should be insured against, and then if you agree, the broker will canvass the insurance market to obtain the best insurance protection to meet your needs, at a competitive price

The broker then arranges the insurance policy, and documentation He or she can also help you with information when required, especially if you have a claim, and your broker will remind you when policies are due for renewal or amendment

Why use a broker ?

In personal and business matters, the correct insurance is vital Wrong or inadequate protection can lead to disastrous consequences for individuals, families or businesses The right advice makes all the difference and prevents costly mistakes

Insurance brokers are specialists in insurance protection They are independent, have an in-depth working knowledge of the insurance market, are able to provide professional objective advice on identifying risks and exposures, and recommend cost effective solutions

An insurance broker is an independent professional adviser who acts for you

How are insurance brokers paid ?

A commission is the most common form of payment by the insurance company to the broker who places your business This commission is paid for the work the broker carried out, including documentation etc

Who is the broker working for ?

Insurance brokers are instructed by you, and at all times, act on your behalf They are not agents of the insurance company Their independence ensures that you benefit from the convenience, knowledge, choice, innovation and their high level of

professionalism:-Convenience: A broker can arrange all the insurance and risk protection you need

Probably only one meeting is necessary to identify your needs, and he or she can develop a comprehensive insurance proposal for you

Knowledge: A broker has daily contact with many insurance companies, and know

where to obtain the best insurance protection at the best cost

Choice: A broker deals directly with most insurance companies, and can present

your risks in the most effective way He or she can canvass the market to obtain competitive terms and costs, and then suggest a contract which best fits your needs

Innovation: Many brokers are now helping their clients reduce risks through modern

risk management procedures and systems, thereby reducing their dependence upon insurance, with considerable cost savings

Your broker will provide on-going services

Insurance brokers undertake all the detailed discussions and negotiations on insurance matters for you, leaving you free to get on with running your business or tending to your own daily responsibilities

As your circumstances change, the broker will review your policies ensuring that the policy

is appropriate, and that you remain well protected He or she may suggest amendments to the policies in the light of market changes or changes in your business or domestic situation This expertise is aimed at saving insurance costs and improving the effectiveness of the cover

What is risk management ?

Many brokers are now suggesting that their clients adopt risk management procedures and systems to reduce their risks, and make savings on their insurance premiums Risk management is all about taking precautions to reduce the risk of loss - this might include fitting smoke alarms or sprinkler systems, or extra security on windows and doors In commercial premises It might involve safer working practices within the factory or more staff training in safety, or even practise fire drills and evacuation procedures There are financial risk management techniques as well for larger businesses which are all designed

to lower insurance risk exposures and costs

Claims

A broker provides a very useful service in processing insurance claims An integral part of the brokers service is to lodge claims on your behalf, completing all the necessary documentation and co-ordinating the loss adjuster, the insurance company and the tradesmen necessary to make an repairs

A broker can ensure that no time is lost in processing the claim by ensuring all the necessary information is available to allow the insurance company to pay the claim promptly

Is an insurance broker the same as an insurance agent ?

No, there is a very big difference between the two The agents acts on behalf of one or more insurance companies and can only sell what they have to offer The broker acts on behalf of you, the client The broker is legally obliged to act in your best interests, is not tied to any insurer and can arrange the best protection for you at a competitive price

Isn't it cheaper to go to the insurance company direct ?

Insurers have to pay for administration by their own staff, and many direct sellers incur heavy advertising costs, so you wont necessarily find it cheaper to go direct to the insurer Not all policies are the same so you would have to telephone or call around at about eight major companies to get an impression of what is available

Brokers are often able to get more competitive prices for insurance because they handle much of the administration for the insurer, and because they place a volume of business which earns them cheaper prices, which they pass on to you

Consumers should also be wary of a "cheap product" Brokers select the most suitable cover for your particular needs which may not always be the cheapest