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 canvas 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, and are able to provide professional objective advice on identifying risks and exposures, and recommend cost effective solutions.
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.

Is an insurance broker the same as an insurance agent?
No, there is a very big difference between the two. The agent 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. 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.