In making the decision on which broker to entrust your insurances, the following should serve as guide only because the process of entering into a business relationship can sometimes be complex. As a general rule an insurance broker:
I. Must be genuinely interested in understanding the business of his client, its risks and insurance needs. This should be an ongoing process as these insurance needs often change.
II. Must always act in professional manner. In most countries the industry regulator stipulates minimum years of cognate experience and/or qualification for persons wishing to hold designated position in a firm of insurance brokers. This ensures to some extent that only reputable persons with proven ability get the nod to operate as brokers.
III. Must be knowledgeable not just about the classes of insurance sought by the client but about the insurance market as a whole and must therefore be up to date on developments in the industry.
IV. Must be willing to act on the client's instruction. Though the client relies on the expertise of the insurance broker, crucial decisions like the insurer to place a risk with is made by the client after reviewing information/analysis presented by the broker.
V. Must be willing to assist in the negotiation of claims. From loss notification, preparing of claim substantiating documents through to final settlement of a reported claim.
VI. Should regularly explain to the client, the law as it relates to the client's risks and insurance programme.
VII. Must be authorised to operate as an Insurance broker. In the UK these intermediaries must be authorised by the Financial Services Authority. It may be necessary to look up the broker's credentials on the website of the regulator and in addition an insurance broker is required to display a copy of his registration certificate conspicuously in his office
It is important that the broker you pick ticks all the boxes so he can properly carry out his role as an insurance intermediary who arranges insurance or carries out other work preparatory to the conclusion of contracts of Insurance on behalf of another and also assists in the administration of such contracts and with processing of claim.
A list of such authorised brokers can be found on the website of the regulatory body of your region / country. In addition insurance brokers associations publish a list of its members. These publications are available in local libraries and on the internet.
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