Why Use A Broker?The main focus for the staff at Abbott Insurance Brokers is to provide its customers with a quality insurance programme, that is cost effective, whilst continuing to supply superior levels of customer service.
Abbott Insurance Brokers also recognises the necessity of providing added value services to its clients and has therefore established key relationships with firms of accountants, lawyers, financiers and other relevant professions.
Our company has access to all insurance markets within New Zealand as well as a number throughout the world.
“It’s unwise to pay too much, bit it’s worse to pay too little. When you pay too much, you lose a little money. That is all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot. It can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run, and if you do that, you will have enough to pay for something better.” JOHN RUSKIN
What Do Insurance Brokers Do?
The broker’s task is to help you identify the risks that you or your business may be exposed to. He or she can then advise you on what risks should be insured against, and then if you agree, the broker will canvass the insurance market to obtain the best insurance protection to meet your needs, at a competitive price.
The broker then arranges the insurance policy, and documentation. He or she can also help you with information when required, especially if you have a claim, and your broker will remind you when policies are due for renewal or amendment.
Why Use A Broker?
In personal and business matters, the correct insurance is vital. Wrong or inadequate protection can lead to disastrous consequences for individuals, families or businesses. The right advice makes all the difference and prevents costly mistakes.
Insurance brokers are specialists in insurance protection. They are independent, have an indepth working knowledge of the insurance market, are able to provide professional objective advice on identifying risks and exposures, and recommend cost effective solutions.
An insurance broker is an independent professional adviser who acts for you.
Who Is The Broker Working For?Insurance brokers are instructed by you, and at all times, act on your behalf. They are not agents of the insurance company. Their independence ensures that you benefit from the convenience, knowledge, choice, innovation and their high level of professionalism:-
- CONVENIENCE – A broker can arrange all the insurance and risk protection you need. Probably only one meeting is necessary to identify your needs, and he or she can develop a comprehensive insurance proposal for you.
- KNOWLEDGE – A broker has daily contact with many insurance companies, and knows where to obtain the best insurance protection at the best cost.
- CHOICE A broker deals directly with most insurance companies, and can present your risks in the most effective way. He or she can canvass the market to obtain competitive terms and costs, and then suggest a contract which best fits your needs.
- INNOVATION Many brokers are now helping their clients reduce risks through modern risk management procedures and systems, thereby reducing their dependence upon insurance, with considerable cost savings.
- PROFESSIONALISM All major insurance brokers are members of IBANZ and are bound by its Code of Conduct, professional standards and ongoing educational requirements. IBANZ sets standards for their financial security, and has a Code of Conduct covering professional service and expertise.
How Are Insurance Brokers Paid?
A commission is the most common form of payment by the insurance company to the broker who places your business. This commission is paid for the work the broker carried out, including documentation etc. A broker administration charge may also be charged. If this is the case, a notation to this effect will show on the invoice.
However, some brokers arrange with their clients to charge a fee for service.
Isn’t It Cheaper To Go To The Insurance Company Direct?
Insurers have to pay for administration by their own staff, and many direct sellers incur heavy advertising costs, so you wont necessarily find it cheaper to go direct to the insurer. Not all policies are the same so you would have to telephone or call around at about eight major companies to get an impression of what is available.
Brokers are often able to get more competitive prices for insurance because they handle much of the administration for the insurer, and because they place a volume of business which earns them cheaper prices, which they pass on to you.
Consumers should also be wary of a “cheap product”. Brokers select the most suitable cover for your particular needs which may not always be the cheapest.
Can I Be Sure They’re Not Selling Me A Product Off The Shelf?
Everyone’s insurance protection needs are different. Brokers are able to negotiate with insurers to extend or adapt policies to their client’s advantage. They are able to tailor protection programmes to your requirements and they can often achieve results which you could not achieve as an individual.
Brokers want to develop long term relationships with their clients so they want to the do the right thing by you. They don’t want to sell you an unsuitable product, just because it is easy or pays high commission. That is not being profession nor ethical. They want the product which is best suited to you and your needs and this may not necessarily be the cheapest available.
A broker provides a very useful service in processing insurance claims. An integral part of the broker’s service is to lodge claims on your behalf. If required they can assist with the completion of all the necessary documentation and co-ordinating the loss adjuster, the insurance company and the tradesmen necessary to make any repairs.
A broker can ensure that no time is lost in processing the claim by ensuring all the necessary information is provided to the insurer.