A commercial insurance broker deals in different varieties of commercial insurance and sells them to commercial customers including small businesses, home businesses, mid size offices and large corporations. Brokers work in small agencies that are licensed and regulated by the Financial Services Authority (FSA).
Commercial insurance brokers deal with many insurance firms and provide their clients with a wide range of choices for insurance packages, discounts, prices and service. This makes working with brokers convenient for customers. Commercial insurance brokers are regulated by the FSA and are members of BIBA (the British Insurance Brokers’ Association).
FSA and BIBA
FSA
The Financial Services Authority (FSA) is an independent, non-governmental body that was given wide ranging powers according to the Financial Services and Markets Act 2000. The FSA regulates most financial services, markets and firms. It even has the authority to take action against firms that fail to comply with the standards set by FSA.
BIBA
The British Insurance Brokers’ Association (BIBA) is an organization that represents the interests of insurance brokers, intermediaries and customers. BIBA has partner members from the leading companies in the insurance industry. The members handle more than three quarters of UK’s industrial, commercial and consumer insurance business. BIBA also provides training, schemes, facilities, technical advice and regulation guidance.
Types of Insurance Brokers
Long-term Investment Insurance Brokers
These brokers deal with life insurance and pensions and require an FSA approved qualification in insurance or financial advice.
Non-investment Insurance Brokers
These brokers deal with motor or house insurance and any non-investment contracts. Such brokers do not require FSA approved qualification but it is preferred that acquire one from FSA as it will improve their credibility in the market.
Community Brokers
These brokers are located in your council or borough. They offer a personalized service in the form of advice, consultation, one-on-one sessions for auto, home and business categories.
Telebroker
A telebroker is like a telemarketer. They conduct a major part of their insurance business via the telephone. They offer commercial insurance products in the categories of auto, motorbike and home.
Internet Broker
This type of broker exists on the internet. You will not have a face to face meeting, as all the products and services are featured on their website. If you have any queries regarding commercial insurance, you can ask them through an email or through an online form.
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