A commercial insurance broker is an individual who deals in different varieties of commercial insurance and sells them to commercial customers. Commercial customers include small businesses, home-based businesses, mid size offices and large corporations. An insurance broker obtains a great number of insurance deals from commercial insurance firms and offers them to various clients. Brokers work in small agencies that are licensed and regulated by Financial Services Authority (FSA).
Commercial insurance brokers have many committed insurance firms and provide their clients with a wide range of choice in insurance packages, discounts, prices and services. Working with brokers is convenient for customers because brokers have a large variety of insurance policies within the same agency. 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
Some types of insurance brokers comprise of telebrokers, internet brokers and community brokers.
Long-term investment insurance brokers
These brokers deal with life insurance and pensions. They must have an FSA approved qualification in insurance or financial advice.
Non investment insurance brokers
These brokers deal with motor or home insurance and any non-investment contracts. These brokers are not required to have any FSA approved qualification but it is common for them to have one for credibility.
Community Brokers
These brokers are located in your council or borough. They offer personalized service in the form of advice, consultation as well as one on one sessions for auto, home and business categories.
Telebroker
A telebroker is similar to a telemarketer because they conduct a major part of their insurance business via the telephone. They offer commercial insurance products for cars, motorbikes and homes.
Internet Broker
This type of broker exists on the internet. You can get in touch with them only online. There is no face to face meeting and all the products and services are featured on the website. If you have any queries regarding commercial insurance, you can ask through an email or an online form.
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