Broker
An insurance broker is a specialist in his field who acts as the representative of a client looking for insurance. His role is to arrange insurance between the buyer (his client) and the insurance company. In doing this he can be dealing either directly with the insurance company or through an agent of the insurance company. He is therefore an intermediary between two parties and he enables them to enter into a contract to which he is not a principal.
The insurance broker deals with all insurance companies and he will search the market for the best product for his client, negotiate the best deal and then place the insurance. He is an independent professional, acting in the best interest of his client.
All insurance brokers must be licensed as financial services providers under the Financial Advisory and Intermediary Services Act of 2004 (FAIS.) As a consumer and insurance buyer you are entitled to request a copy of the broker’s license. The act has laid down requirements regarding information that must be disclosed to you by the insurance broker. This information include: (but is not limited to)
- Details of the policy, risk covered, benefits, premiums payable.
- Contact details of the insurance company.
- Any special conditions and exclusions.
- The claims procedure.