Why you should use brokers to achieve your insurance needs

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Chuks Udo Okonta

Brokers are major stakeholders in insurance business, hence they control larger chunk of the underwriting industry distribution channels.

In Nigeria, due to the relevant role played by brokers, it is said, that they generate over 60 per cent of the industry’s gross written premium.

Brokers are intermediaries, working hard to secure good policies at a comfortable rate for their clients, without, clients incurring any cost on them.

Why you need an insurance broker

* Professional counsel

Insurance brokers are professionals and many of them before venturing into broking business were top executives in underwriting companies. This gives them edge to understand the best and suitable policies you need to effectively manage your risks.

* Competitive rates

As professionals, brokers shop for the best rate for their clients. Therefore, engaging the services of a broker, would enable you get good value at a good rate.

* No fee

Services rendered to you by brokers are free. You would never incur any cost for the professional counsel offered by your broker.

* Claims management

One of the reasons you need brokers, is for them to help you process and get your claims paid promptly.

It has been said that most people who complain of non claims settlement, do not use brokers for the insurances.

* Regulation

Insurance broking business is strictly regulated. In Nigeria, the business is regulated by the National Insurance Commission (NAICOM) and Nigerian Council of Registered Insurance Brokers (NCRIB).

Before you engage a broker, it is also necessary you conduct a background check on his or her operations. Know-Your-Broker (KYB) is highly recommended.

It is also necessary to note that in the insurance industry there is a clause known as ‘No Premium No Cover’. Therefore, ensure your broker procure the policy immediately he/she collects premium from you, for brokers don’t pay claims. Your premium must be paid to the Insurer before you can make a claim.

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