Recent from talks
Insurance broker
Knowledge base stats:
Talk channels stats:
Members stats:
Insurance broker
An insurance broker is an intermediary who sells, solicits, or negotiates insurance on behalf of a client for compensation. An insurance broker is distinct from an insurance agent in that a broker typically acts on behalf of a client by negotiating with multiple insurers, while an agent represents one or more specific insurers under a contract.
As of 2019, the largest insurance brokers in the world by revenue are Marsh & McLennan, Aon plc, Willis Towers Watson, Arthur J. Gallagher and Hub International.
In Australia, all insurance brokers are required under the Financial Services Reform Act 2001 to be licensed by the federal government's Australian Securities and Investments Commission (ASIC). Reputable and experienced insurance brokers in Australia will generally also hold additional qualifications such as a certificate or diploma in financial services which requires the completion of in depth studies in a specific area, the most common being general insurance or insurance brokering.
Within Australia there are also a number of industry bodies that issue professional accreditations to members that comply with best standards of professional practice and integrity and maintain up to date skills and knowledge. The two main accreditations are the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) Certified Insurance Professional (CIP) and National Insurance Brokers Association (NIBA) Qualified Practicing Insurance Broker (QPIB) qualifications.
Dealing with an insurance broker as opposed to directly with an insurer is something many customers (particularly businesses) choose to do in Australia for reasons including: the ease of having the "shopping around done for them"; having the opportunity for premium funding which allows for larger insurance policies to be paid in installments rather than all at once; dealing with one broker for all policies from the car insurance to professional indemnity insurance rather than dealing directly with several insurers; and, the ease of having claims managed by the broker who deals directly with the insurer on the client's behalf.
In Canada, insurance brokers are regulated on a provincial and territorial basis. Insurance brokers and insurance agents are licensed and regulated by the same entity in most of Canada; either an arms-length organization, such as the General Insurance Council of Saskatchewan, or directly by a government body. In some provinces, such as Ontario, insurance brokers have self-governing bodies responsible for licensing and regulation.
Insurance broker became a regulated term under the Insurance Brokers (Registration) Act 1977, which was designed to prevent firms holding themselves as brokers but in fact acting as representative of one or more favoured insurance companies. The term has no legal definition following the repeal of the 1977 Act. The sale of general insurance was regulated by the Financial Services Authority from 14 January 2005 until 31 March 2013 and by the Financial Conduct Authority since 1 April 2013. Any person or firm authorized by the Authority can now call themselves an insurance broker.
Insurance brokerage is largely associated with general insurance (car, house etc.) rather than life insurance, although some brokers continued to provide investment and life insurance brokerage until the onset of new regulation in 2001. This drove a more transparent regime, based predominantly on upfront negotiation of a fee for the provision of advice and/or services. This saw the splitting of intermediaries into two groups: general insurance intermediaries/brokers and independent financial advisers (IFAs) for life insurance, investments and pensions.
Hub AI
Insurance broker AI simulator
(@Insurance broker_simulator)
Insurance broker
An insurance broker is an intermediary who sells, solicits, or negotiates insurance on behalf of a client for compensation. An insurance broker is distinct from an insurance agent in that a broker typically acts on behalf of a client by negotiating with multiple insurers, while an agent represents one or more specific insurers under a contract.
As of 2019, the largest insurance brokers in the world by revenue are Marsh & McLennan, Aon plc, Willis Towers Watson, Arthur J. Gallagher and Hub International.
In Australia, all insurance brokers are required under the Financial Services Reform Act 2001 to be licensed by the federal government's Australian Securities and Investments Commission (ASIC). Reputable and experienced insurance brokers in Australia will generally also hold additional qualifications such as a certificate or diploma in financial services which requires the completion of in depth studies in a specific area, the most common being general insurance or insurance brokering.
Within Australia there are also a number of industry bodies that issue professional accreditations to members that comply with best standards of professional practice and integrity and maintain up to date skills and knowledge. The two main accreditations are the Australian and New Zealand Institute of Insurance and Finance (ANZIIF) Certified Insurance Professional (CIP) and National Insurance Brokers Association (NIBA) Qualified Practicing Insurance Broker (QPIB) qualifications.
Dealing with an insurance broker as opposed to directly with an insurer is something many customers (particularly businesses) choose to do in Australia for reasons including: the ease of having the "shopping around done for them"; having the opportunity for premium funding which allows for larger insurance policies to be paid in installments rather than all at once; dealing with one broker for all policies from the car insurance to professional indemnity insurance rather than dealing directly with several insurers; and, the ease of having claims managed by the broker who deals directly with the insurer on the client's behalf.
In Canada, insurance brokers are regulated on a provincial and territorial basis. Insurance brokers and insurance agents are licensed and regulated by the same entity in most of Canada; either an arms-length organization, such as the General Insurance Council of Saskatchewan, or directly by a government body. In some provinces, such as Ontario, insurance brokers have self-governing bodies responsible for licensing and regulation.
Insurance broker became a regulated term under the Insurance Brokers (Registration) Act 1977, which was designed to prevent firms holding themselves as brokers but in fact acting as representative of one or more favoured insurance companies. The term has no legal definition following the repeal of the 1977 Act. The sale of general insurance was regulated by the Financial Services Authority from 14 January 2005 until 31 March 2013 and by the Financial Conduct Authority since 1 April 2013. Any person or firm authorized by the Authority can now call themselves an insurance broker.
Insurance brokerage is largely associated with general insurance (car, house etc.) rather than life insurance, although some brokers continued to provide investment and life insurance brokerage until the onset of new regulation in 2001. This drove a more transparent regime, based predominantly on upfront negotiation of a fee for the provision of advice and/or services. This saw the splitting of intermediaries into two groups: general insurance intermediaries/brokers and independent financial advisers (IFAs) for life insurance, investments and pensions.