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.
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
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 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.
- PT WEB PROTEKSI SOLUSINDO
PT WEB PROTEKSI SOLUSINDO
Field: Insurance Brokers
Area: South Jakarta
- PT WILLIS INDONESIA
PT WILLIS INDONESIA
Field: Insurance Brokers
- PT TRI DHARMA PROTEKSI
PT TRI DHARMA PROTEKSI
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 :
- 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
- ACME Insurance Broking Services P. Ltd. The company is located at 3 A, 3rd floor, Jamals, 17 Jagannathan Road, Nungambakkam, Chennai 600 034
- 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.