Insurance brokers in Durban

Hiring an insurance broker in Durban

Durban, South Africa

What do insurance brokers do?

Insurance brokers represent the needs of their customers, usually a company, organisation, or individual searching for insurance. Sometimes also called short-term insurance advisers, these insurance brokers can help you find the right insurance plan for you. With experience in an often complex industry, you will find their insights valuable.

An insurance broker can help you find insurance in Durban, and they can also assist you with insurance claims. Whether they work for you or for an insurance company, regulations require brokers to act in the clients best interests with honesty and integrity. Access a well of knowledge and experience when you speak to a broker in Durban about your insurance needs. Your insurance broker will represent your needs when talking to insurance providers and will help you navigate the relevant systems, so you benefit. 

The first step in the process is usually searching for insurance quotes in Durban from insurance providers for the insurance you’re looking for. It is wise to select a broker that has experience and understands the South African insurance industry. Such brokers will be able to show you deals and packages you may not find on your own. These brokers will also answer your questions, advise further steps, and help you with claims.

Are insurance brokers and insurance agents the same thing?

No, insurance brokers and insurance agents are not the same, but sometimes they can fulfil similar roles. They may both work in the insurance industry, but they often represent different interests. An insurance agent represents insurance companies, but a broker usually  represents the needs of the insured person or organisation. Brokers can sometimes also have agreements with insurance providers or work for a specific insurance provider. Your broker should be most interested in getting you what you need.

Can I save money by using an insurance broker?

Possibly. Sometimes brokers charge a fee, but sometimes they don’t. Whether or not you save money depends on what deals the broker can find for you and whether they charge a fee. If your insurance broker asks a fee for their services, they need to make you aware before any work begins. If you agree to the fees, your broker can proceed and find you the best insurance for you. You can also go directly to the insurance company instead of working through a third party. It's your choice. Some prefer brokers because of the convenience, while others prefer to find the best insurance themselves.

Who pays an insurance broker?

Aside from charging their clients a fee, insurance brokers get paid by insurance companies through a commission structure. For each policy they sell, the insurance provider must pay a percentage of the client’s monthly premium to the insurance agent. According to South Africa’s short-term insurance act, the percentage a broker should get is between a maximum of 12.5% and 20% of the monthly premium. Does this influence a broker’s choice of cover for you? One could argue that more expensive plans would offer them more lucrative returns, but any reliable insurance broker will prioritise your interests.

There are laws that regulate a broker’s services towards their clients. Some requirements are set out in the Short-Term Insurance Act, Act 53 of 2008, while long term insurance or medical insurance are both regulated by different laws. Insurance brokers in Cape Town are required by law to inform their customers of any fee the customer will have to pay beforehand. The customer must then agree to the fee in handwriting. Prices should be reasonable, and services should be fair and unbiased.

How much does an insurance broker cost in Durban?

Prices depend on multiple factors. First, your broker may base their fees on how much insurance companies pay them compared to what they need to make ends meet. Second, the economy and financial climate of the region could play a role. A broker who is concerned about having too few customers could possibly charge more. Sometimes insurance brokers do not charge their customers any fee at all. The amount it will cost you to acquire the services of an insurance broker in Durban will vary. Remember that brokers only earn money through fees and commission from insurance companies.

An insurance broker in Durban will be able to help you find a great insurance policy that covers everything you need it to. Start today by speaking to an insurance broker, or you can go directly to the insurance provider too.

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.