Insurance Agent Vs Broker ppt

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Insurance Agent Vs BrokerWho Is The Right
Choice? 
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What are insurance agents and brokers?

• The primary job of both insurance agents and
  brokers is to sell insurance to their clients. 
• Both professions need to be licensed in their
  states and must comply with all applicable rules
  and regulations. And both insurance agent and
  broker act as intermediaries between the
  insurance buyers and the insurance provider.

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What is the difference between an insurance agent
and a broker?

• The primary difference between insurance agents
  and brokers is who they represent. 
• While insurance agents represent one or more
  insurance companies, insurance brokers represent
  the insurance buyer.

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What is an Insurance Broker?  

• Insurance brokers work directly with insurance
  buyers and are not tied in any form with
  insurance companies.
• They utilize their knowledge, expertise, and
  experience to help you assess your unique insuranc
  e needs so you can find the coverage thats best
  suited for you. 
• Some key roles and responsibilities of insurance
  brokers include 
• Develop effective marketing strategies
• Carry out administrative tasks and document
  management
• Manage business development and promotional
  activities
• Establish a professional relationship
  between insurance buyer and insurance providers

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How does an Insurance Broker make Money?

• Insurance brokers make a living by collecting
  brokers fees and charging commissions. Once
  their client has accepted a quote and completed a
  purchase with the insurance provider, the
  insurance broker receives a certain percentage of
  the premium cost as commission from the insurer. 
• Insurance brokers rely on business from existing
  clients. This allows them to earn additional
  commissions when their clients need a new
  insurance policy or have to renew an existing
  policy.   

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Advantages of choosing an Insurance Broker

• Low Cost
• Low chance of Bias
• Market Expertise 
• Availability of Discounts

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Disadvantages of choosing an Insurance Broker

• Reliance on Insurance Agents
• Limited Offers 
• Lack of Training and Experience
• Sales-driven

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What is an Insurance Agent?

• An insurance agent is a professional who acts as
  representative for insurance companies. They help 
  their clients select the right insurance to buy,
  but represent the insurance company throughout
  the process. 
• An insurance agent allows their client to choose
  from available policies that are offered by the
  carrier.  

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• There are primarily two types of insurance
  agents 
• Captive agents typically represent one insurance
  company. 
• Independent agents or insurance sales agents can
  represent multiple carriers rather than a single
  entity. 

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How does an Insurance Agent make Money?

• The rate of commission that captive agents make
  depend on whether they are employees of their
  parent company, or independent contractors. 
• Insurance agents who are regarded as employees
  are provided salaries and benefits. 
• Insurance agents who are classified as
  independent contractors are provided with payment
  based on sales and commissions. 

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Advantages of choosing an Insurance Agent

• Save money
• More options
• Saves time and effort 
• Unbiased and reliable advice 

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Disadvantages of choosing an Insurance Agent

• Possibility of Bias
• Possibility of Inexperience

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• Let us help you solve your insurance woes! 
• Get in touch with us today! 

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Get in touch with an agent to stay covered.