I have written about the two parties in the insurance market since I started this series.
Today I want to discuss with us the third party in the insurance market which is THE INTERMEDIARY
The intermediary is an individual or an organization that links the insured to the insurer. By now, we understand who an insured isHOW TO BENEFIT FROM THE 4 PARTIES IN THE INSURANCE MARKET PART TWO. and who an insurer is. HOW TO BENEFIT FROM THE 4 PARTIES IN THE INSURANCE MARKET. PART ONE.
The business of insurance is not a tangible product on sale. The intangibility of insurance products is a major factor for its obscurity. Hence the need for professionals who understand the concepts and benefits of insurance to reach out to the insuring public for possible enlightenment.
TYPES OF INSURANCE INTERMEDIARY
THE INSURANCE BROKERS
These are limited liability companies with a minimum share capital of five million naira, these companies are licensed by National Insurance Commission(NAICOM) through the Nigerian Council of Registered Insurance Brokers (NCRIB) to operate as professionals whose professional advice is deemed to be relied upon. If a client act on the advice from the insurance broker and such client incurs a loss on the premise of the advice received, such client is entitled to institute an action against such company to claim for damages. This is why professional indemnity is a statutory requirement for insurance brokers when establishing the firm.
These are independent intermediaries who provide risk management advisory and recommend appropriate insurance cover for the insuring public.
The difference between brokers and consultants are: While brokers operate as limited liability companies, the insurance consultants are a group of professionals in the insurance industry who come together as partners in business
Bimbol Consultancy Services is an independent intermediary company that is made up of qualified professionals providing risk management advisory services and placing insurance risks with reputable insurance companies. If you need to engage the services of an insurance professional, kindly reach out to us at Bimbol Consultancy Services, we will be glad to be of help.
Insurance agents are directly attached to a particular insurance company. They represent that company alone as their intermediary. Insurance agents are made up to 80% of the marketing force of insurance companies, most especially the life insurance companies.
5 BENEFITS OF BUYING INSURANCE THROUGH INSURANCE INTERMEDIARY
Connectivity: The brokers, consultants, and agents have a common goal to achieve as insurance intermediaries. This common goal is to connect the insured to the insurer for insurance protection.
Convenience: Intermediaries make insurance purchase a convenient task for the insured. The insured does not need to physically get into the premises of the insurer before insurance cover could be effected. Rather from the confines of the insured’s office or home, he could get all the documentation processed courtesy of the intermediary.
Clarity: The insured becomes well informed on the terminologies in the insurance policy documents because the intermediary has exhibited professionalism on the job. The insured is cleared on the specific purpose for which he is buying the insurance product.
Continuity: When the insured is satisfied with the service delivery from an insurance intermediary, such customer is happy to repeat the purchase
Compliance: The emergence of more qualified professionals playing the role of intermediaries has boosted the interest of the insuring public in the insurance market. This is because the professionals operate in compliance with regulations, this has eradicated most of the unethical practices that indicted the industry in the yesteryears.
The role of the intermediaries in the insurance market is pivotal in the industry as insurance products are intangible and the concepts and benefits need to be adequately delivered to the insured. This gap is what the intermediaries have done justice to.
Reach out to us at Bimbol Consultancy Services, for all your insurance needs and concerns.
- Email: firstname.lastname@example.org
We are insurance independent intermediary of your choice.