When it comes to insurance, the term “insurance agents” and “insurance broker” are used interchangeably. It is impossible to talk about insurance brokers without mentioning the term “insurance agent.” along. In this article, comparisons will be drawn between the two terms in other to give a clearer understanding of both professions despite their similarities.
Both professions are significant players within the insurance industry, both serving as intermediaries for insurance companies and potential policy buyers.
Who is an Insurance broker?
An Insurance broker is an intermediary in insurance, who sells, solicit and negotiate insurance policies for compensation. Just as you would need a pharmacist for drug prescriptions, an insurance broker is your plug when it comes to matters involving insurance.
What do Insurance Brokers do?
Insurance brokers are authorities in insurance and risk management solutions who help individuals and corporate bodies find the best insurance policies and deals that best suit the needs of their clients.
Different kinds of insurance brokers focus on the different types of insurance there is.
Roles Of An Insurance Broker
- Develop a solid risk profile and specific features for businesses and individuals.
- Give expertise advice on insurance programs protecting clients.
- Negotiate and facilitate claims procedures on behalf of clients.
- Study the portfolio of insurance. companies to secure the best possible insurance pricing.
- Periodic presentation of details of insurance policy to clients.
- Utilise the vast knowledge of the insurance industry to select and meet the tailored needs of clients at competitive rates.
- Provision of technical expertise and insights on developments and creative ideas within the insurance industry.
How do you become an Insurance broker?
Insurance brokers must be well versed in their expertise in other to breakdown the complex insurance terms that exist to their customers.
To be an insurance broker, you need to familiarize yourself with the insurance industry and learn as much as you can about it. Your competitors range between insurance agents and other insurance brokers. The below lists how you can become an Insurance Broker.
A BSc Degree in Finance Related Courses
Although not necessary, a BSc degree in actuarial sciences, Economics, Insurance and other finance-related courses is afoot in the right direction if you want to become an Insurance broker.
Internship with an insurance firm
Ensure you find ways to intern with financing institution, preferably in risk management companies or a brokerage firm. During your internship, you’ll acquire and participate in critical roles that open you to more experience.
Become a Licensed Insurance Broker
There is a governing body for Insurance brokers in Nigeria called The Nigerian Council of Registered Insurance Brokers ( NCRIB). They proffer licenses for insurance brokers and insurance broker agencies. You’ll need to be certified by the NCRIB before you can operate as a licensed insurance broker.
If you’re interested in a career in financial planning and risk management, you should consider being an insurance broker. Or other similar career paths such as underwriting. An insurance underwriter evaluates insurance applications and determines the amount of coverage and premiums clients require. Interest in these professions requires keen analytical skills to peruse the information that will determine a client’s overall risk.
If advising clients is your forte, you can become a financial advisor, insurance agent and insurance underwriter. You must be knowledgeable about financing topics such as insurance, economics, investments, mortgages, retirement plans and so on.