Unsure about what insurance brokers do? Read on for a brief explainer.
The UK insurance industry is the biggest in Europe according to the Association of British Insurers, with Britain something of a global hub when it comes to insurance brokers. Over 3,000 operate here – Simply Business one of the many – with the City of London home to numerous brokers with all sorts of peculiar specialisms, from mobile phones to professional footballers.
If you’re entirely new to insurance you might not be quite clear on what we do, so here’s a quick summary to get you to grips with the basics of insurance brokerage.
Insurance broker vs. insurer
Insurance brokers aren’t the same as insurers. Or job is to find you the right cover, find you the right insurer and help you make and manage a claim, but responsibility for the risk associated with your policy sits with the insurer.
In practice this means that while we work to pair you with the insurer who’s right for you and work with you if you have to claim, we’re not the ones who pay out when a claim is made.
So what role do we play as an insurance broker, exactly?
Insurance brokers are insurance experts that tend to specialise in certain fields - in our case business insurance and landlord insurance. Our role is to negotiate with insurers to help you get a better deal.
We’re authorised and regulated by the Financial Conduct Authority (FCA), who have a strict set of rules that insurance brokers have to follow. This means that we always act in the best interests of customers searching for insurance.
We act on behalf of buyer, rather than insurer, and do all the legwork involved in finding a policy specific to you. And we can go pretty specific, too. If your business is niche or obscure, it’s down to us to find a policy that meets your particular needs.
Essentially, a broker is (or should be) a guiding hand in the complex world of insurance. We provide a range of quotes, arrange the right cover and make the claims process simpler. We’re also impartial, unlike direct insurers, and at Simply Business aim to give you a bit more than your average aggregator – we’re experts after all and our customer service keeps us in business!
Given that we were nominated as UK Broker of the Year at the British Insurance Awards 2015, we think we’re on the right track, too.
How do we benefit from brokering your insurance?
In return for bringing customer and insurer together brokers receive a commission, which tends to vary on the scope and nature of a policy. Ultimately, our aim is to strike a good deal that keeps both customer and insurer happy - but if you find a better like-for-like quote elsewhere, we’ll match it.