When it comes to the financial sector, there are a lot of industries which seem out of reach. They can feel jargon-heavy if you’re not within the industry yourself. We are going to be releasing a new blog every month with one of our trusted associates. This week we’re stepping into the world of insurance thanks to some insight from Chris Harding of The County Group. He’s going to talk you through the benefits of using an insurance broker. He’ll also chat about the difference this could have for your business today.
What is an insurance broker?
Brokers are Financial Conduct Authority (FCA)-regulated professionals who utilise their insurance expertise to help customers find affordable and effective cover options. There are more than 2,000 registered brokerages in the UK, according to the British Insurance Brokers’ Association.
A comparison site might seem like the best and easiest way to secure low-cost cover. However, a website can’t meet your unique insurance needs like a broker can. When picking an insurance policy through a comparison site, you may find yourself guessing that the cover amount may be enough. You might think that you don’t really need this Cyber Insurance Policy, when actually it would protect your organisation if you did. A comparison site can’t give you information which is bespoke to you. Indeed, a broker will work with you to secure specialised solutions and provide expert guidance.
Top Tip: Don’t rely on a comparison site for personalised cover. Have a look at the numerous advantages of utilising a broker to help you navigate your insurance.
What are the Benefits of using a Broker?
There are a number of reasons why using an insurance broker is beneficial to your organisation. Here are some listed below:
Unlike a comparison site, your broker will ask you more about your personal situation. They’ll do this to make sure your insurance offerings are catered to your individual needs. What’s more, they will be able to tell you whether you are already protected by your existing insurance policies. This will avoid any cover overlaps or gaps.
Think you’ve reviewed all of your cover options online? Think again. Brokers are well-respected members within the industry—which is why a significant amount of insurance companies refuse to deal directly with individuals or businesses, only accepting enquiries through brokers. In other words, using a comparison site leaves you with more limited cover options, while a broker can provide you with full market access and additional insurance offerings to choose from.
Your broker will implement their specialist skills to find you affordable insurance options that still have the best product features—such as important policy extensions and low premiums. Because of their vast market knowledge and ability to negotiate competitive offerings on your behalf, brokers also possess more flexibility in finalising a product price than comparison sites do.
Remember: Using a comparison site might seem like the best way to secure low-cost cover, but a website can’t meet your unique insurance needs like a broker can. Your broker will work with you to secure specialised solutions and provide expert guidance.
Brokers strive to provide clients with more than just a low-cost insurance offering and annual policy renewal. Your broker will communicate with you regularly to answer any insurance-related questions you might have. They’ll also update your policy as necessary and cater to your individual needs. What’s more, your broker won’t rush you into picking your policy, either. Rather, your broker will explain each component (including the fine print) to ensure you understand what your cover offers before signing.
Because brokers are FCA-regulated, they have additional obligations to ensure their clients receive quality service and keep their personal information protected. With this in mind, you won’t need to worry about online insurance scams or stolen data when using a broker. Brokers will only work with trusted insurers and utilise top-notch security measures to keep your information safe from a data breach.
Making a claim can be a difficult experience. But if you have a broker, they won’t let you go through it alone. Your broker will be sure to provide expert advice and support throughout the claims process. Brokers typically communicate with the insurer for you in the event of a claim to ensure you receive the best possible outcome and a fair payment.
Your broker will offer you a variety of risk management content to help reduce your likelihood of having to make a claim. This content includes, but isn’t limited to:
- Monthly and quarterly newsletters
- Detailed cover overviews
- Long-form risk management guides
- The latest industry news and statistics
- Regulatory updates and compliance guidance
If there are any areas of the financial sector which you would like uncovered, please let us know through our enquiry form!