The insurance broker and agency industry in the US has been growing steadily for the last couple of decades. At the moment, there are around 420,000 businesses and more than 1 million employees in this industry. In 2020, the market reached $161 billion in the US. We can see that the need for this kind of service skyrocketed in the last couple of years.
The insurance policies are acquired either through an agent or broker. In this market, these terms are used interchangeably pretty often. However, both need to have appropriate licenses and serve as a middleman between policy buyers and firms. Let’s take a look at aspects that make them different.
What is an Insurance Broker?
The thing that separates the insurance broker and agent is that the broker works for the buyer, not the companies. All the experience broker has is used for providing the client with a deal that will serve him the best. Since we are talking about an occupation that’s focused only on working with clients directly, buyers have the freedom to reach out to them whenever they are in need.
They have many different duties to perform while searching for the best interest of their clients. The main task is to compare offers from many insurers to get the appropriate conditions for their client. Furthermore, they are looking for an opportunity to reduce premiums and to obtain discounts when possible.
Not only that they provide these services, but they also help buyers understand why a particular option is the best one for them. Some brokers work with international clients and provide coverage for people who work or live overseas. In case you require this kind of assistance, insurance brokers in Dubai will be able to help with your situation.
The Benefits of Hiring an Insurance Broker
Let’s take a look at a couple of reasons why you should hire an insurance broker.
Understanding Your Needs
Many people know they need insurance but are not sure about what kind of coverage will suit them the best. A broker will present clients with a couple of insurance after determining their financial needs.
- More Options
Working with a broker means that client has much more options to choose from. Not only that, the buyer will receive an education about all the potential solutions. That way, the buyer will have much broader knowledge. Knowing which one to choose is much easier after that.
- The Right Time to File a Claim
We can see that finding the right time to file a claim is a problem for many people. Brokers keep track of your insurance, and they can help with finding the right moment. Not only that they provide solutions to their clients, but they can also be advisers when needed.
What is an Insurance Agent?
Usually, insurance agents represent only one company. It is not rare to hear people refer to them as captive agents. An agent serves as a channel that provides crucial information to the potential buyer. An agent accommodates clients with all the possible options. Of course, the particularities in these contracts are determined by the company that issues them.
They have an agreement with companies about meeting specific standards and following guidelines. On the other side, there are independent agents. Instead of working for just one firm, they have the freedom of comparing policies from multiple companies. They present their clients with more options than those who work with just one of 5,965 insurance companies in the US.
They develop connections with potential buyers through referrals and networking. These connections are the basic level of their business. Their job gets much easier after they build a long-term base of clients. It is a principle important both for those who work for a company and those who are independent.
The Benefits of Hiring an Insurance Agent
Let’s see the advantages of working with an insurance agent.
- Personalized Experience
Both agents who work with a company and independent ones will fully commit to your case. They will provide you with a personalized experience since they are working towards your best interests and present you with coverage that suits your needs.
- Can Save Money
Hiring an independent agent has the potential to save you some money down the road. By providing offers from multiple vendors, clients can choose from a wide array of different ones instead of looking at just one. Usually, independent agents find more economical solutions.
- Financial Consultations
After you hire an agent, that person becomes much more than that. Plus, it’s there to help you with financial advice for things like starting a business, buying a house or a car, renovating your home, or covering a retirement condo.
Knowing the difference between insurance agents and brokers can be crucial in some situations. By understanding both of these concepts, clients will have a much easier time when making a choice.