In principle, there are three ways of brokering and managing insurance policies.
All of the industry’s traditional salesmen have the same occupation. However, they differ widely due to different commitments, liability obligations, and interests.
Get information here about the general conventions of types of brokers, legal requirements, as well as benefits and disadvantages.
Exclusive Representative
The simplest way to work as an insurance agent is to work as an Exclusive Representative. In this case, Representatives are obligated to an specific insurer and thereby also to a large extent represent the interests of that insurer. Although agents work contractually on an independant basis and not as full employees of the insurer, they are still considered a part of the insurer`s sales organisation: their contract restricts them from acting on behalf of any other clients.
Multiple Agent
Multiple Agents have somewhat more flexibility in that they may offer their services to several clients and may also determine for themselves with which insurers they would like to work. Multiple Agent`s advantage is their ability to offer clients a broader range of services, which allows them to make more neutral and therefore more favourable recommendations.
Insurance Broker
The Insurance Broker is committed to the interests of their clients. The Insurance Broker is specialist executive administrator for his clients for all insurers. Such Brokers hold an enviable position and in every case offer their clients a genuine advantage - they repersent only their clients`interests with regards to the insurers and act exclusively on behalf of the former.
This arrangement only works because Insurance Brokers always operate their business separate from the insurers.
One outstandingly attractive feature of this position is that despite working exclusively on their clients`behalf.
Special form: Affiliated insurance brokers
The special form of “affiliated insurance brokers” has developed specifically and independently in key account business. Key accounts with considerable demand for insurance coverage set up a separate entity for that purpose or participate in an already existing insurance broker. The scope of activities of such affiliated insurance brokers is rather broad.
If you would like to learn more about affiliated insurance brokers, please contact us.
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