Let us get it out at the very start: The terms we will be discussing here are insurance industry terms, or jargon. These are used to describe the ranks and responsibilities or activities of the people you may encounter when you inquire about insurance coverage.
For better understanding, let’s begin by identifying who you would most likely talk to, when you ask about insurance and work our way up to learning what (and who) an insurance broker is.
Insurance Agent vs. Broker: What is the Difference?
An insurance agent (also known as an insurance advisor, financial advisor, financial planner, etc.) is the person who directly interacts with clients like you who are interested in getting insurance. They are licensed professionals who can help you get the right insurance plan for your needs (or wants).
Insurance agents are the frontline people of the insurance industry and, their responsibility is to:
- Introduce what insurance is to you and the value it offers to you
- Listen and understand your insurance needs are
- Give you a bit of background on the different types of insurance products available to you.
- Introduce the different coverage levels or packages
- Provide you with the proper knowledge and information (based on what you need) to make an informed decision about getting the insurance product/s you want.
What they don’t do, is:
- Pick the insurance products for you. They can’t choose for you; you have to decide which products you want to get.
- Decide what is best for you. Insurance agents can only recommend the products that are ideal for your needs (or wants).
- Decide how much your coverage or sum assured will be (the amount of money you can apply a claim for). That’s for you to decide, based on your income and needs.
- Promote insurance products other than those they are exclusively affiliated with. They cannot sell the products of another competing brand or company, i.e., an AXA insurance advisor cannot sell FWD Life products; conversely, an FWD financial planner cannot sell AXA insurance products. Only insurance brokers can do that.
Insurance Brokers: What They Do and Who Needs One?
What Does An Insurance Broker Do?
A step above the Insurance Agent is the Insurance Broker. Insurance brokers do not work exclusively for any single insurance provider. Instead, they work directly with their clients.
They don’t recommend or sell insurance plans on behalf of a single company. It’s the other way around: they scout and prepare an array of proposals and quotations from different insurance providers (based on their client’s unique needs and circumstances), and may negotiate to get the best prices possible for their clients.
The key differences between insurance agents and brokers are perspective and scale:
- Insurance agents are affiliated with a single insurance provider and have a personal one-on-one relationship with their clients. Brokers work directly with commercial clients---business owners and company executives---but are not affiliated to just one insurance company.
- Insurance agents offer group insurance products (usually to grouped persons or small businesses); brokers provide their clients with options for their employees by presenting proposals from different insurance providers, not just one.
- Insurance agents may have clients with multiple policies from one provider. Brokers help clients, who may require many policies, get what they need from different insurance providers.
- Insurance agents are often limited because of their company affiliation. Brokers, on the other hand, have connections to many insurance providers giving their clients more options for more of their insurance needs.
Individuals like you can go to an insurance broker to get the best quotation possible for your needs. And rightly so! Insurance should not be something that you get without the right research. And a broker can help you get as many quotations from different insurance providers. Quick caveat: should you go to a broker if you’re shopping for insurance? Not necessarily. Ask your family and friends for referrals if you can, and see if you can work with the agent or broker you are introduced to. At the end of the day, establishing rapport is still essential.
Is Assurance.Ph an Agent or a Broker?
Assurance.Ph provides insurance products and services to the clients of its sister brands, namely Automart.Ph and Motomart.Ph. It is not a broker; it is an agency that operates under the Mabuhay Insurance Agency Corporation, to provide simple, easy-to-understand insurance products with a personal touch, excellent customer service, and professional expertise.
Assurance.Ph is helmed by Claudine Mayer, a top-level insurance professional with more than thirty (30) years of experience in the industry, with both domestic and international insurance broking firms. Very soon, Assurance.Ph aims to not only support the needs of its auto and motorcycle insurance clients but also provide them with the insurance coverage for all assets they want to protect, from life insurance to residential coverage.
Does Assurance offer other types of insurance?
Yes, we do. Assurance.Ph is your partner in providing financial protection for your vehicle and property---and now, you and your family. As we continue serving our auto and motorcycle insurance clients, we are are also expanding into other insurance products, including residential insurance and cash assistance for COVID-19. We are doing our best to make insurance simple and easy to understand, answering inquiries, and helping clients pick and purchase the plans that suit their needs and budgets.
Start a chat or call with any one of our Assurance Advisors today at 0915 705 2031, 0905 205 0402, or 0956 302 9631, or email us at email@example.com to know more about our vehicle insurance prices and packages.