Insurance Brokers: Are They Who You Really Think They Are?

insurance broker

Choosing an insurance broker in Nigeria should be considered as one of the smartest moves for anyone looking for improved customer engagement, customer experience, faster claims administration and greater premium rates that always protects your best interests. However, many still have the misconception that insurance brokers are the same as insurance agents, charge fees for services rendered to their clients, only provide services to corporate organizations, and their activities are not monitored by any regulated authority.

There are many benefits to using an insurance broker, but these benefits can often be overshadowed by a few common negative opinions which has caused a huge disadvantage to the purpose of their establishment.

Opinion #1: Insurance Brokers do not Represent the Customers

It is important that we reiterate that brokers do not work for insurance companies but their customers. They are independent professionals licensed by NAICOM and NCRIB to act as agents connecting clients with the right insurance products they need – SMEs, vehicles, homes, businesses, properties and other interests.

Opinion #2: Insurance Brokers Must Sell Certain Insurance Policies

Brokers are not obligated to sell one insurance policy than another, because they are licensed and have access to several policies from numerous insurance providers – Health, General, Life and sometimes Pension and annuities. They obtain quotes from multiple underwriters and compare offers and conditions related to various policies. Also, it is pertinent to note that choices are fewer when customers approach insurance providers directly.

Opinion #3: Insurance Brokers Never Liaise with Their Clients

A lot of prospective and existing insurance customer think the moment a broker onboards and make you purchase an insurance policy; you are left at the mercy of the insurance provider. NO! this is simply untrue, Brokers ensure they are available to answer all your questions, provide explanations on the policy document in layman’s English, help you through the claims process, maintain full representation on your behalf and provide numerous advantages at your policy renewal period.

Opinion #4: Insurance Brokers Charge Fees for Services provided to their clients

Every service provided by the broker is FREE. For every product ‘sold’ (Lol! As we know, insurance is sold not bought), the premium (money for insurance) paid goes to the insurance company while a small percentage goes to the broker for helping secure the deal. This is paid by the insurance company to the broker and not by the customer to the broker.

Opinion #5: Insurance Brokers Do Not Have the Required Expertise

Aside being licensed by the regulator to sell insurance products, brokers are experts in risk assessment and management. They provide the following services:

  • They identify specific risk factors during their assessment of the customer’s risk portfolio and advise on steps to mitigate such risks prior to requesting a quote or buying a policy
  • After proper risk assessment, brokers ensure they negotiate with insurance providers on shopping for the best rates and conditions to suit their customer’s needs and budget
  • They also recommend policies and products to close gaps observed during the risk assessment
  • At renewals, they ensure your risk profile is properly updated to qualify for lower premiums or discounts

Opinion #6: Insurance Brokers Are Not Educated and Trained

Insurance Brokers are highly trained professionals, mostly registered under The Nigerian Council of Registered Insurance Brokers (NCRIB), regulated by National Insurance Commission (NAICOM) and must also complete a licensing exam before receiving their accreditation by  Chartered Insurance Institute of Nigeria (CIIN).

If you have questions relating to your motor insurance policy and do not understand the technical jargons written, YOA Insurance Brokers Limited assist you with a FREE POLICY REVIEW to ascertain the level of cover you have and how to achieve more with your insurance policy (in terms of benefit). We are just a chat away (08072659474) on WhatsApp.

Acknowledgment

The author would like to thank and acknowledge the contributions made by Adebiyi Muhammed, a Team Lead, Schemes and Retail with YOA Insurance Brokers Limited in their Lagos office. He can be reached at muhammed.adebiyi@yoainsurance.com.