What Is a Commercial Insurance Broker?

Insurance Broker, Article 118 of China s Insurance Law stipulates that an insurance broker is an agency that provides intermediary services for the insurer and the insurer to enter into insurance contracts based on the interests of the insured and collects commissions according to law . (Note: Including insurance brokerage companies and their branches.)

Insurance broker

(Insurance consulting services)

Right!

Insurance Broker (Insurance Broker), Article 118 of the Insurance Law of China stipulates that an insurance broker is based on the interests of the policyholder and

1. Discover the insurance needs of potential customers and strive to become an insurance broker recognized by customers;

2. Investigate and investigate the risks facing customers, and provide risk assessment reports;

3. Develop a risk management plan for the risks facing customers, the core of which is an insurance plan;

4. Assist or represent customers in insurance purchases and choose the appropriate insurer and insurance plan;

5. Assist customers to apply for insurance, payment and other procedures;

6. Review technical documents such as insurance agreements, insurance contracts, and insurance policies;

7. Carry out insurance training for customers' insurance-related personnel, and inform them of important insurance matters such as the contents of the insurance scheme, the insured's obligations, the insurance reporting method, and contacts of insurance companies and brokerage companies;

8. Assist customers to report, collect report materials, investigate the scene, negotiate with insurance companies on behalf of customers after an insurance accident occurs;

9. Daily work, regular reporting of insurance services, and other tasks.

1.For the purpose of entering into an insurance contract, provide fire protection, damage prevention or risk assessment and risk assessment for the policyholder.

Insurance brokers provide insurance applicants with insurance solutions, apply for insurance procedures, make claims on behalf of policyholders, and provide consulting services such as disaster prevention, loss prevention or risk assessment, and risk management, so that policyholders fully realize the risks inherent in their operations, and With reference to the comprehensive and professional insurance recommendations provided by insurance brokers, the risks existing in the insured can be effectively controlled and transferred to achieve the maximum risk protection with the most reasonable insurance expenditure, and reduce and stabilize the risk management in operation The cost guarantees the healthy development of the enterprise.

In addition, because the business of insurance brokers still has to get insurance from insurance companies, the increase in the business volume of insurance brokerage companies will increase the overall business volume of insurance companies, which will reduce the insurance company's business expenses. In the insurance market, insurance brokers The person successfully sold the reinsurance share of the insurance company, eliminating the worry of the insurance company's difficulty in reinsurance, and greatly reducing the operating risk of the insurance company; and the insurance broker handled insurance affairs for the agent, reducing the insured's lack of understanding of insurance Knowledge and unnecessary claim disputes brought to the insurer when making a claim improve the operating efficiency of the insurance company.

Therefore, the emergence of an insurance broker is beneficial to both the policyholder and the insurance company.

Generally speaking, insurance brokers have three ways of organization: individual, partnership and corporate.

Most countries, such as the United States, Britain, Japan, and South Korea, allow individual insurance brokers to engage in insurance brokerage business activities. In order to protect the interests of policyholders and maintain the order of the insurance market, each country strictly manages individual insurance brokers. Insurance supervision agencies in various countries have stipulated that individual insurance brokers must participate in professional liability insurance or pay business insurance premiums. In the UK, the Insurance Brokers Registration Board, as the regulator, sets the minimum working capital and

According to the different parties, insurance brokers can be divided into narrowly defined insurance brokers (specially referring to the original insurance market brokers) and reinsurance brokers.

The narrowly defined insurance broker refers to the intermediary directly between the policyholder and the original insurer, and directly accepts the entrustment of the policyholder. According to the nature of business, narrowly defined insurance brokers can be divided into life insurance brokers and non-life insurance brokers.

A life insurance broker is represented in the life insurance market

Insurance broker and

Now insurance is getting closer and closer to our lives. When you decide to buy insurance for your family,

The business scope of foreign insurance brokers includes

As early as 1556, King Fira II of Spain issued a decree on the management of insurance brokers. The decree confirmed the insurance broker system and stipulated that insurance brokers must not take a share in insurance business. The supervision of brokers has appeared since its inception, and it has developed into two types of supervision measures: legal supervision and self-regulatory management.

In the United Kingdom, the country with the strongest insurance brokers and the longest history, the Congress passed the Insurance Brokers Registration Act in 1977, which stipulates the qualifications, registration,

At present, China has implemented a strict access and supervision system for the establishment and operation of insurance brokerage companies.

Internationally, modern insurance brokers have a century of history.

At present, despite the significance of insurance for each of our families, in the current Chinese market, purchasing insurance is not an easy task. As consumers, when we consider purchasing insurance, we will have various confusions: who has the most insurance companies? Who is the best? There are many types of insurance products. What should I buy? Each agent speaks differently, who should I trust? The insurance clauses are complicated and cumbersome. How to interpret them? Product rate calculation is complicated, how to buy is cost-effective? How to determine how much security is needed and how to calculate it? and many more.

First look at the insurance company. As of December 2004, the Chinese life insurance market has grown from a monopoly in 1988 to 10 Chinese insurance companies and 27 foreign insurance companies. With the increasingly liberalized policy and regulatory system, more foreign insurance companies are waiting in line to enter the Chinese life insurance market. The intensified competition has provided consumers with more choices, but at the same time, it has increased the difficulties for consumers in choosing.

Look at life insurance products. We divide life insurance products into six major demand categories: accident insurance, protection insurance, health insurance, endowment insurance, child insurance, and investment / savings insurance. Under the six major demand categories, according to the specific protection function of the product, it can be further expanded. Divided into thirteen product categories. There are many types of life insurance products, the functional prices vary widely, and the terms are complicated and difficult to understand, making it difficult for consumers to choose.

Finally, consumers have a lot of dissatisfaction with the existing agent sales force. The vast majority of agent sales teams are familiar with only 2-3 insurance products. The lack of professional quality makes agents have some misleading and deceptive behaviors in the sales process, and adopts a profit-driven and product-oriented sales method instead of customers. Demand-driven sales have created a widespread crisis of dissatisfaction and trust among consumers.

For example: In our market research, a mid-to-high-end customer from Beijing commented on a salesman who sold him insurance: "He doesn't care what I think, and he just talks about how good that product is, and keeps letting me Buy it, which makes me very disgusted "; another customer said:" I asked a few salesmen of the insurance company to help me compare, the products are the same, the conclusion is different, the more sloppy I am, the more I dare not buy " And a mid-to-high-end customer from Guangzhou said: "The salesman who can really consider me from my perspective is the really good salesman."

The unprofessional nature of the existing sales force also brings a lot of confusion and questions to consumers who have already bought insurance. To give an example: Among Mingya's customers, there is a high-end customer named Mr. Yao, who is the CEO of an IT company with annual income of more than one million and is the family pillar of a family of three. Mr. Yao is a very good insurance-conscious client. Before he knew Mingya, he had contacted the agents of many insurance companies and bought up to 7 insurance products. The annual premium is tens of thousands of yuan. . When Mingya's professional insurance consultant diagnosed the insurance purchased by Mr. Yao, he found that: first of all, the product structure is unreasonable, which is reflected in the lack of important protection limits, and the protection function overlap between products is serious; in addition, specific product selection There are also unreasonable aspects, manifested in the product's support function does not meet the needs or the cost performance is not optimal. Mr. Yao said, "I know I need insurance, so I found a lot of salespeople and bought a lot of products, but whether they were good or not enough? I haven't been able to figure it out. Now it seems that I have spent a lot Money, but did not get the insurance that is most needed and best for you. "

In general, the current problems in China's insurance market actually reveal a fundamental rule : the life insurance sales method must change from a product-oriented sales method to a demand-oriented consulting service method, thereby providing consumers with Create real value. This is an inevitable rule of every industry, and so is the insurance industry. In the early stage of industry development, the supply side occupies a monopoly position, and consumers are in a passive position. There is no more choice. As the industry develops and competition intensifies, the initiative gradually transitions from insurance companies to consumers. Only a consulting service model that really starts from the customer's needs is a truly long-term effective sales method.

Insurance broker

In the process of this sales method change, insurance brokers are the best candidates to reflect the needs of customers. Compared with insurance agents, insurance brokers have a fundamental advantage in value proposition. Agents sell products on behalf of insurance companies, while brokers, on behalf of customers, choose the insurance solution that best meets their needs from the products of many insurance companies, while assisting customers to obtain services from insurance companies. The experience of the international insurance market shows that insurance brokers are the leading sales channels in mature insurance markets and are strongly supported by regulators. This era of rapid development in the Chinese insurance market has arrived.