Insurance Broker Responsibilities and Types of Insurance Brokers

Posted on


Insurance Broker Responsibilities and Types of Insurance Brokers

Insurance Broker Responsibilities and Types of Insurance Brokers. What is insurance? Insurance is an agreement between two or more parties with which the insurer binds itself to the consumer or the insured by receiving insurance premiums to provide compensation to the insured due to loss, damage or loss of expected profits.

Or legal responsibility to third parties that may be suffered by the insured arising from an uncertain event, or to provide payment based on the death or life of an insured person. Here we will explain the insurance broker responsibilities.

Insurance Broker Responsibilities

what if we as the insured party or the client of the insurance company want to use an Insurance Broker to bridge business with the insurance company or guarantor. The following is a review.

  • The Insured Party comes to the Insurance Broker to get placing slip. With the placing slip, filling out the application form is not needed because the Insurance Broker has pocketed the survey results as his working guidelines.
  • Insurance brokers will work immediately after placing the slip submitted by the insured with this, the time to deal with claims and other matters related to the problem between the insured and the insurer can be shorter.

So easy is the way to take care of insurance matters between the insured party and the insurer (insurance company) can occur because the insurance broker works based on the authority that becomes an extension of the government and regulated by the Act. The following is the responsibility of an Insurance Broker.

Insurance Broker Responsibilities and Types of Insurance Brokers


What are the responsibility of an Insurance Broker?

  • Insurance brokers are responsible for introducing prospective clients with risk management strategies, thus the insurance plan to be chosen can be in accordance with the client’s conditions, including the business and financial conditions of his clients.
  • As an insurance broker, matters relating to effective marketing strategies, including upsell for old clients, bookkeeping system updates, databases and records, even supervision of claims and fair insurance agreements between the insured and the bearer are already in the responsibility slot.
  • Insurance brokers are responsible for submitting regular progress reviews to each interested party.
    The responsibility of insurance brokers is of course also accompanied by authority. This authority becomes an integral part of the duties, roles and responsibilities charged and becomes an insurance broker’s work bill. The following is the authority of the insurance broker.

Insurance brokers are entitled to collect premiums representing the interests of the guarantor.

The advice given by an insurance broker is absolute, meaning that both an insurance broker is asked and not responsible for giving advice to both the insured and the insurer.

Accompanying the insured lawyer, if there are problems that must be resolved through legal channels.

Make a claim on a third party, based on a letter of appointment or power of attorney with and or on behalf of the insured party.

If there is a large claim or General Average, the insurance broker is authorized to suggest the use of Loss or Average Adjuster.

If the insurer agrees that the insurance broker can first pay a claim against the insured party. Of course for the process, there must first be an agreement between the parties involved in the insurance chain.

Types of Insurance Brokers

Endowment insurance

This insurance is a term insurance product that has multiple benefits. Its nature is like term insurance as well as savings. This product is very popular before unit link products appear.

The form of endowment insurance varies. There are bonuses that appear regularly, for example, 3 years or 5 years. This endowment insurance premium is far more expensive than a term or whole life insurance. Prestige endowment fades along with the appearance of unit links. In addition, because the royal gives a bonus, the cost of endowment insurance is actually burdensome to insurance companies.

Unit link insurance

The unit link is non-traditional insurance. This is insurance with two bags, a protection bag and an investment bag. Some of the premiums paid are used to pay for protection and some are placed in mutual funds in the form of unit links. Policyholders will be asked to choose where their investments will be placed, whether in equity funds, mixed mutual funds, fixed income mutual funds, or money markets.

The unit link is closely related to the capital market. This product is quite complicated and not easily understood. Policyholders must really pay attention and study this product.

Well, after knowing the types of insurance, choose the one that best fits your financial goals. First calculate insurance needs, then determine the product.

Insurance Broker Definition

Broadly speaking, an Insurance Broker is a body formed to help insurance customers to obtain their full rights to insurance companies where the customer is listed as a policyholder.

Insurance brokers in their capacity as bodies that protect the interests of the wider community are formed directly by the government. This is a manifestation of the government’s hand in providing guarantees and protection for insurance users throughout the country.

In other words, this broker is a body under the formation of the government, so its function is in the capacity as an institution and cannot be replaced by individual work, different from the insurance agent.

An Insurance Broker is a professional institution that provides assistance and bridging between the insured party or the insurance client and the insurer or insurance company.

As an insurance broker, of course, you have to be able to convince many parties involved, in other words, to solve problems that may arise as long as the insurance chain runs from the process of getting customers to dealing with and involving various things if claims occur.

In other words, the Insurance Broker profession represents and represents two directions in the chain of insurance activities between customers and service providers or insurance companies.

Insurance Broker vs Agent

Broker (Insurance Broker Company)

An Insurance Brokerage Company is a company that provides intermediary services in insurance coverage and handling insurance compensation settlements by acting for the benefit of the insured (Law No. 2 Year 92 Ps. 3)

Insurance Brokerage Companies are prohibited from placing insurance coverage on insurance companies that do not have business licenses from ministers. (Law No. 2 Year 92 Ps. 12)

Insurance Brokerage Companies can only conduct business by acting on behalf of the Insured in the context of transactions relating to insurance contracts. (Law No. 2 Year 92 Ps. 5)

Insurance agent

Insurance Agent is a person or legal entity whose activities provide insurance services for and on behalf of the insurer (Law No.2 Th. 92)

Each Insurance Agent can only be one agent of 1 (one) Insurance Company (Law No. 63 Th.99 Article 27)

Insurance Agents are required to have an Agency Agreement with an Insurance Company that is authorized (Law No. 63 Th. 99 Ps. 27)

Insurance Brokerage Firms

There are a lot of insurance brokerage companies, he said, we will mention.

    Field: Insurance Brokers
    Area: South Jakarta
    Field: Insurance Brokers
    Area: Jakarta
    Field: Insurance Brokers
    Area: South Jakarta

What is an Insurance Broker Salary

For salaries from insurance brokers in Indonesia is very diverse. Some are high and some are low. It all depends on how developing the company is occupied. However, the average salary of an insurance broker per month ranges above an average of 3 million per month.

The Insurance Broker in India

There are many insurance broker companies in India. Among others are :

  1. India Insurance Risk Management and Insurance Broking Services Pvt Ltd (Earlier known as India Insurance Risk Management Services Pvt. Ltd.) The company is located at Flat No. -405, IV Floor, Archana Arcade, St. John’s Road, Secundrabad 500 025
  2. ACME Insurance Broking Services P. Ltd. The company is located at 3 A, 3rd floor, Jamals, 17 Jagannathan Road, Nungambakkam, Chennai 600 034
  3. Bharat Re- Insurance Brokers Pvt. Ltd. This company is addressed at Old No. 12, New No.6, Poes Road, (Off) Eldams Road, Chennai- 600 018.

How to Become an Insurance Broker

in managing the insurance broker business, the regulator issues two rules of the game. Namely, the minimum insurance broker’s regulation, stated in Government Regulation (PP) No. 39 of 2008. In this regulation, the authorities require insurance brokers to have a minimum capital of Rp. 1 billion at the end of December 31, 2008. This rule aims to ensure and absorb risks that arise.

In addition, the regulator is also the Minister of Finance Regulation (PMK) 152 regarding the implementation of good corporate governance or good governance for GCG. In this regulation, OJK requires all companies, such as brokers or brokers, to have at least two directors and commissioners. The goal is for the company to be well managed and check and balance occur.

In addition to proposing the licensing terms of new companies. Apparindo also requested concessions to regulators. This is related to governance so that insurance brokers have two directors and commissioners.

They asked capital companies under Rp. 2 billion, get the deadline for fulfilling the ideal number of management no later than 4 years. Capital companies over Rp. 2 billion – Rp. 5 billion are given 3-year concessions. While the capital of Rp 5 billion – Rp 10 billion, a maximum of 2 years. Especially for companies with capital of more than Rp 10 billion, they must immediately adopt the policy. That is what we can explain about the insurance broker responsibilities.

Read Also: Health Insurance Definition Economics In Hindi

5+ Home Insurance Savings Tips

Your dwelling is often your most precious asset which you will need to protect. We made an index of all discounts possibilities linked with Residence insurance plan. This checklist is easily the most full point of view on home insurance coverage financial savings tips. Quite a few insurance plan brokers contributed to this checklist. So, let's start!
1. Change your content coverage
Renting a Apartment? You may usually lower your written content protection. No must insure your possessions to as many as $250,000 in the event you have only a laptop plus some IKEA furnishings!
2. Renovations
Renovating your home may end up in lower property insurance plan rates, as property insurance policy premiums for older, poorly maintained dwellings tend to be larger. In addition, renovating only areas of your respective dwelling (e.g. the roof) can lead to insurance policy price savings.
Adding a swimming pool to your dwelling will possible lead to a rise in your coverage costs considering that your legal responsibility ( e.g. the risk of anyone drowning) along with the value of your home have improved.
Insurers prefer copper or plastic plumbing - maybe it's a wise decision to up grade your galvanized / lead pipes in the course of your future renovation cycle.
5.Shop around
Look for, Compare, and swap insurance policies providers. There are numerous insurance coverage suppliers and their value offerings for the same guidelines can be really distinct, thus use various on the net applications and communicate to a number of brokers since just about every will include a minimal variety of insurance firms.