The term broker traditionally identifies a person or entity that acts on behalf of a customer or client which is known as the principle. The broker uses their knowledge and expertise to advise the client on certain decisions usually regarding purchasing and trading. The broker can either play an advisory role or can also have complete purchasing and decision making power in order to act on behalf of the client or principle.
The absolute most commonly found kind of brokers are investment brokers and commodity brokers. Individuals who need to invest their money and trade in commodities seldom have the data and time to control their investment portfolios closely so they employ brokers such as for example these who’ve far more insight and expertise to do something on their behalf. There are however many other types of brokers who provide people making use of their inputs of knowledge and expertise. Other examples of brokers include business brokers, Forex brokers, real-estate brokers, insurance brokers and many more.
The term insurance broker is however a really vague one. Before insurance brokers were exactly like any broker, but specializing in insurance policies. They’d act on behalf of the principal/individual who employed them in order to investigate various insurance options from various insurance companies in order to secure the most effective deals for the principle, as well as help interpret certain formalities within insurance contracts. A trend eventually developed in which insurance brokers didn’t necessarily lookout to find the best interests of the principle and would favor certain insurance companies. In fact many insurance companies posed as brokers in order to obtain the preference of deceived and uninformed individuals. Consequently, the term insurance broker has developed into one with a much broader meaning. Berufsunfähigkeitsversicherung Kassel Today an insurance broker is basically seen as any individual who acts as a real estate agent to insurance on behalf of the principle, aside from perhaps the agent is acting in the interest of the principle or in the interest of a particular insurance company.
In fact the term insurance broker is rarely used to make reference to a real estate agent who’s hired by individuals seeking the most effective insurance offers. Today it’s more accurately placed on employees of insurance companies who represent the clients of the company. Insurance brokers still represent insured individuals, but instead they are hired by the insurance company itself to take care of the claims, legalities and transactions between the insured and the insurance company. Therefore most brokers represent just one insurance company and act in the interests of the insurance company that they represent. The broker essentially acts as an intermediary which communicates the interests of the insured to the insurance company, manages the procedures of coverage and ensures that the insurance contract is adhered to.
In conclusion, the existence of an broker is very essential to the insurance company and the insured individual, because they insure that neither party breaches the insurance contract and ensure that procedures are followed. The insurance broker also makes it easier for insured individuals to communicate their interests to the organization and successfully make claims should the need arise.