A guide to insurance brokers in Randburg
Everything you need to know about insurance brokers
Randburg, Gauteng, South Africa
Are you considering hiring an insurance broker? There are a few things that you should know before deciding whether to go the insurance broker route. Our guide dives deeper into the world of insurance brokers in Randburg, Gauteng.
What is the insurance broker’s role?
In these uncertain times, an insurance broker can provide you with some assurance and help you choose and manage your insurance effectively. It’s an insurance broker’s job to help you find the right insurance and to help you navigate the insurance world when it comes to claims, complaints, forms, processes, and more. If you’ve ever struggled to resolve a matter telephonically with an insurer, you will be relieved to know that an insurance broker can save you the hassle.
Firstly, insurance brokers in Randburg should help you find the right insurance by getting insurance quotes and deals you can choose from. The insurance broker should then offer you sound advice about these options, carefully describing the positives and negatives. The broker must answer all the questions you have about the policy options in order for you to make an informed decision.
Next, the broker will help you with paperwork and forms to make the application process easy for you. Your insurance broker should talk to the insurance provider on your behalf. Once you have insurance, a broker can help you with claims processes, queries, challenges, and systems related to your insurance.
Who can hire an insurance broker?
Insurance brokers work for people, companies, and organisations who need insurance and not for companies that provide insurance. That means that any legal entity looking for insurance or insurance advice can hire an insurance broker. The person to whom a policy belongs, i.e. the insured, would be the person who hires the broker (whether a person or company).
Can an insurance broker benefit me?
If you hire a reliable insurance broker in Randburg, they can benefit you. Insurance brokers are also called insurance advisors because they have a great deal of experience in the industry. That knowledge and experience can give you an advantage in the insurance world. Experienced brokers are also well versed in finding deals and combinations of policies that will benefit you the most.
If you hire a broker that is biased or unreliable, however, they may not benefit you at all. Cost-wise, you could end up paying more for insurance when you hire an insurance broker than when going direct to the insurance provider.
How does an insurance broker get paid?
Insurance brokers make money by charging their clients a fee and by receiving commission from insurance companies. This commission is calculated according to percentages prescribed by the Short-Term Insurance Act of South Africa, Act 53 of 2008. The commission is a percentage of your monthly premium, so the higher your premium is, the more an insurance broker can potentially get.
Percentages are not the same for all kinds of insurance, and they may also differ between brokers, depending on what deal the broker has made with the insurance provider. It is not good practice to present policy options to customers based on biases and commission, but there are some insurance brokers in Randburg who may do so.
Luckily the law also prescribes certain behaviours for insurance brokers, like informing clients beforehand about fees. Before any work begins, the client must agree to the fees in writing. Fees should be fair, and services should be unbiased. If you are unsure about the reliability of your insurance broker, ask a few pointed questions before agreeing to proceed.
Are insurance brokers the cheapest option?
An insurance broker can sometimes save you money, and at other times they could end up costing you more. This is because some brokers charge no extra fees, while others do. Some are also more reliable than others and truly have your best interests at heart. If an insurance broker has more experience in a certain type of insurance, that could make a huge difference when it comes to getting the right deal and settling complex or large claims.
Can I hire an insurance agent instead?
Insurance agents aren’t the same as insurance brokers and they do not play the same role. You can’t hire an insurance agent because the agents represent insurance companies and not insured legal entities.
What do insurance brokers in Randburg charge?
Sometimes you will pay nothing for an insurance broker, and other times they will charge a fee. Insurance brokers only make money through fees and commission, so their fees are often based on how much commission they receive from insurance companies. It’s best to ask upfront about fees before hiring a broker.
Information quoted is correct at the time of publishing this article. The information in this article is provided for informational purposes only and should not be construed as financial, legal, or medical advice.