Why Use a Broker

Clients often ask “What is the difference between an insurance broker and an insurance company?”

The answer to this question is both simple and very complex. Yet it is possibly one of, if not the most important questions you need to know and fully understand. It will ensure you are securing the most appropriate advice you require before deciding on the type of insurance policy you need to purchase.

In Australia, you can purchase insurance:

  • From an adviser who represents only one insurer and can only offer that company’s product
  • From an insurance company’s call centre directly, or from one of their offices
  • On the internet
  • From the Post Office, Bank and even from a Supermarket through an arrangement that has been struck between a particular insurance company to distribute products to their respective customers
  • From a licensed insurance broker who can offer a choice of coverage from a range of various insurance companies with additional enhancement along with wider coverage

Brokers have access to many different policies, because they deal with a range of insurance companies.

Good brokers will be aware of the benefits, exclusions and costs of competing policies on the market.

A good broker will help to arrange and to place the cover and can often advise on how to make the most of your insurance budget.

An insurance broker’s first duty is to his or her client. An insurance broker works for you, the client. Not the insurance company.

That’s the difference.