This one goes out to the policyholders, or the ones shopping around trying to find the best policy for their home, automobile, business, etc. – do you really need an insurance broker? Is an insurance broker worth it? Yes and no. Insurance brokers are great means for purchasing insurance, but not everyone needs to use an insurance broker. They’re generally used by those who want a deeper understanding of their insurance coverage, have complicated insurance needs, or want to save on their coverage.
That being said, who doesn’t want to save money where they can? With the constant rise of insurance prices, it only makes sense to work with someone who has a deeper understanding of the insurance hard market and can therefore give you the easiest ways to save on coverage.
Insurance Brokers & What They Do
Insurance brokers, as you may already know, serve as insurance intermediaries, and help insurance purchasers – i.e., prospect policyholders – purchase coverage that best fits their needs. Are they for everyone? Not necessarily! But can they do a lot of good? Absolutely.
When purchasing insurance, it is always advised that you obtain quotes from as many insurers as possible. This way, you can compare between them. However, not all insurance policies are built equally, and not all competitive quotes are available from a quick Google search. This is where having an insurance broker can be greatly beneficial, as they can walk you through your options, detail each policy, and even provide you with quotes from otherwise inaccessible markets.
An insurance broker aids you, equipped both with their in-depth industry knowledge and knowledge of who you are and what you need. They save you time and money, but – yes, they can cost you money. Ultimately, that money is usually negligible, since the cost you’ll save by working with the insurance broker will typically outweigh the cost they charge you.
Insurance Brokers vs Insurance Agents (in Canada)
In Canada, insurance brokers and insurance agents are both professionals who play crucial roles in the insurance industry, but they have distinct differences in their roles and responsibilities. An insurance broker acts as an intermediary between the insurance buyer and the insurance companies. They are independent professionals who work on behalf of their clients, not the insurance companies. Their main objective is to provide personalized advice, assess the client’s insurance needs, and shop around various insurance carriers to find the best coverage at competitive prices. Brokers have access to a wide range of insurance products and can offer unbiased recommendations tailored to the client’s specific requirements.
On the other hand, insurance agents work directly for insurance companies and represent the interests of their respective companies. They are licensed to sell and promote the insurance products offered by their company. While agents can offer guidance on the insurance policies their company provides, their recommendations are limited to the products offered by their employer. Unlike brokers, agents do not have access to multiple insurance carriers’ products, and their focus is primarily on promoting and selling the policies of the company they represent. Clients who prefer a more diverse range of insurance options often turn to brokers for their independent advice and expertise.
When Do You Use an Insurance Broker?
We may sound biased, but you can use an insurance broker whenever you have more complicated insurance needs, or you want to make the most out of your budget. You can use an insurance broker at any point in the insurance buying process, but for some people it might make most sense if:
- Want insurance for a growing business.
- Want to better understand all the ins and outs of your insurance, including policy limits, exclusions, deductibles, and so forth.
- Want to shop around for the best price without sacrificing your own time.
- Have multiple properties or vehicles.
- Want to work with an insurance intermediary who knows your background.
- You have been labelled as high-risk and want to save on your coverage as much as possible.
There are other means to purchase insurance, such as going through the company directly, purchasing through an agent, etc. Generally, it all depends on your needs, but TLDR: if you meet any of the criteria that we have listed, or you simply want to save money, we recommend a broker.
Looking to Become an Insurance Broker?
Now, let’s look at it from the other side of things: have you ever considered a career in insurance? Want a more stable career path, one which you can grow yourself without needing to become part of a much larger organization? Want to be your own boss? For entrepreneurial-minded individuals teetering on the edge of the insurance industry, know that there’s a lot of benefits of becoming an insurance broker.
As an insurance broker, you get the opportunity to work independently and be your own boss, often running your own brokerage or working within an established firm. This role allows you to build strong relationships with clients, understanding their unique needs, and providing personalized insurance solutions. The satisfaction of helping individuals and businesses protect their assets and loved ones in times of uncertainty can be incredibly rewarding.
Indirectly, because you also understand insurance more, your own coverage will be easier than ever to find! Not only will you be able to help your clients find more unique coverage, but you yourself will have a fuller understanding of your own policies.
AssurUni is Canada’s fastest growing hub for independent insurance brokers who want to give back to their communities in a way that makes sense. Reach out to us to chat today about your thoughts on branching into the world of insurance or going independent (if you’re already familiar with the industry.) We’re happy to talk when it makes sense for you.