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Preface: This post was originally published in 2023 and has been updated on April 17, 2025, to provide you with the most current and accurate information.
Nothing is guaranteed in today’s fast-paced lifestyle. We can never truly predict what might happen in the next moment. Life is full of uncertainty, and the smartest way to handle it, whether it concerns your health, car, new home, or travel, is by securing yourself with the right insurance policy.
To choose the right insurance policy, reaching out to an insurance broker with IRDAI Insurance Broker License is a great idea. Such an individual has the authority to promote and sell the insurance products on behalf of several insurance companies. They do not work for a specific insurance company and can guide you about the best insurance plans from various companies.
Now coming to the main point, how to choose the right insurance broker. What are the major factors that one should consider while searching for the best insurance broker? To answer this, in this blog post, we will explain some crucial factors that must be considered by someone looking to buy reliable and valuable insurance support.
The following are the key considerations for selecting the right insurance broker:
The insurance services tend to vary greatly from one insurance broker to another. For example, some brokers would provide an extensive variety of support like various insurance plans, support to check contract clauses, provide cover advice, or just accommodate simple change requests without any cost.
It may astonish you to learn that a number of the reputed insurance brokers don’t even provide the required support through the claims process. They consider themselves as only a ‘placing’ broker, suggesting the right insurance policy, and not more than this.
When it comes to associating with an insurance broker, ask exactly whether they’ll offer you in regard to full claim support. If they agree, they can communicate with insurers when you wish to make a claim and keep you informed of the latest updates regarding the same.
It is always recommended to put up any underlying questions to the insurance broker like: does the insurance firm have any stake in any section of your business? This is because his response tends to have a direct influence on the quality of service you will receive from him.
The idea behind this is to discover if the broker would be completely impartial – whether that is in who they present as the insurer or how strongly they’d support them if there was ever an issue on a big insurance claim.
Though most insurer-owned brokers remain transparent in their endorsements, there have been notable legal cases over time where brokers were penalized for failing to meet the expected standards. It's wise to be more cautious if you suspect a direct conflict of interest at play.
Do remember that an insurance broker must have a valid license issued by the IRDAI to operate. You may come across individuals acting as insurance brokers without the proper license or necessary education. Such brokers are unlikely to respond to your queries in a proper or informed manner.
You need to avoid generalist brokers. While they may appear to be experts in their field, in reality, they often struggle to understand the specific nature of your business and identify where your actual risks lie.
This lack of understanding can lead to major gaps in coverage issues that wouldn’t arise with a broker who has the right domain expertise. The industry has witnessed generalist brokers making basic errors, such as failing to insure technical equipment properly or neglecting to arrange coverage for an agency’s contractual obligations.
Furthermore, without deep industry knowledge, a broker may not be aware of the latest industry trends, available insurance solutions, or what terms and premiums are truly cost-effective.
Different brokers have specialization in different types of products and services. The more skilled your broker, the more professional they are. Your broker's know-how of the concern is supposed to be general rather than particular if they essentially deal in auto, house, and some professional insurance.
Pick an insurance broker with experience in your sector. This is because the perils in different sectors like accounting and administration will be considerably different from those in fields like architecture and engineering. A skilled broker can help you better understand the specific risks in the sector of their expertise and make smarter insurance choices.
You must examine the training and ongoing development of the broker. Research and education are considered the building blocks of insurance experience. An insurance broker's exposure to the respective field and involvement in riskier and more complex scenarios will level up as their knowledge takes shape.
In line to other consulting-based domains, an insurance broker will constantly collaborate in close coordination with mentors as they level up their expertise. This refers to the fact that an insurance broker will regularly transform their style or approach of booking on the pros and mentors who have assisted them down the line.
To choose the right insurance policy, reaching out to an insurance broker is a great idea. However, you must only choose the right insurance broker. For this, you need to consider certain factors as mentioned in this post. It is always wiser to choose the right broker from the outset than having to switch after experiencing regret.
If you want to become an insurance broker in India, Registrationwala can help you. We can help you to obtain an insurance broker license from the Insurance Regulatory and Development Authority of India (IRDAI) in a smooth and hassle-free manner!
Q1. Can a business provide insurance broker services without an IRDAI license?
A. No, a business without an IRDAI license cannot provide insurance broker services. This license is a mandatory and legal requirement.
Q2. Which regulations govern the insurance brokers in India?
A. IRDAI (Insurance Brokers) Regulations 2018 and the Insurance Regulatory and Development Authority Act 1999 govern the insurance brokers in the country.
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