The Role of Brokers in Risk Management and Insurance ~ Insurance Academy

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Insurance Broker is a legal entity formed in order to meet the needs of the community for an agency that can assist them in purchasing insurance products and assist in the event of a claim.

Insurance brokers or brokers do not only sell insurance products to customers; or simply meeting customers with insurance companies. Brokers have an important role in risk management.

What is the broker’s role in risk management and in insurance?

Arrange insurance

• Designing and documenting insurance strategies: as professionals, brokers prepare risk management plans according to the condition of the customer / prospective insured. Composing a Quotation Slip is a part of this role.
• Negotiating with underwriters and providing various insurance options/options to the prospective insured
• Implementing an insurance policy: after the insurance policy is issued, the broker helps the insured to carry out the existing warranty, terms and conditions.

Provide policy support

• Processing if there is a request for a change in policy conditions, changes in business needs, increased risk exposure, etc.
• Handle claims. A broker must have a claims division that helps the insured in handling claims to insurance. In many cases, the chances of a claim being paid out are much higher using a broker than without going through a broker.
• Conducting meetings between insurance companies and customers. Customer meetings can occur during site surveys, presentations of insurance guarantees, or during claims.

Compliance review

• Review and report compliance with the current insurance policy and its terms on a quarterly basis (3 months)
• Reviewing and reporting compliance with current insurance policies with Risk Management procedures and ensuring compliance with the provisions of the policy conditions