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Neil Said:

How hard is it to get a job working for an insurance broker?

We Answered:

Brokers have agencies, too.

It's very easy to get the job, if you're willing to split the commission. No salary, of course.

Tyrone Said:

Insurance Brokers. What are the pros and cons of working there?

We Answered:

If you're doing support then you're probably not getting commission, which is one of the things I enjoy most about being a broker.

I also like that I can work from home, on the road, or in the office. I can set my own hours and pretty much be my own boss for the most part.

The Cons are that the insureds you have assume that you work directly for and know every single thing about the Carriers insurances which you sell.

This is quite impossible. I have over 15 Carriers for Life, Health, and Disability Insurance and it is impossible to know all of their products, claims proceedures, underwriting polices, etc.

Other than that I love it.

Bernard Said:

Insurance broker?

We Answered:

I have recently replied to a similar question about career as an insurance broker, but here goes.

An insurance broker is both the agent of several insurance companies (who authorise him to sell their products) and an agent of his clients (who he may advise on the type of insurance products available). This immediately causes possible conflicts of interest although the FSA are imposing standards to ensure this does not happen.

The broker may offer 'a fair market analysis' i.e. a range of products for a type of insurance, ' a limited range of products' or a single product and it is quite possible for a broker to offer different numbers of products for different types of insurance e.g. a broker may offer a 'fair market analysis' for car insurance but only a single legal expenses insurance policy. It is a condition of the FSA rules that they advise you on what basis your requirements are offered (usually found in a status disclosure or IDD document).

Insurance brokers may 'advise you' or offer you a selection of policies for you to choose. If you buy on the internet you are not getting advice and it is up to you to ensure that the policy you buy meets your needs - only a fool or an expert should buy insurance online. If the broker offers advice then they have to ask sufficient questions to ascertain your 'demands and needs' and make a recommendation based on your 'demands and needs'. You should therefore get what you need under those circumstances (which is NOT always the cheapest!)

Insurance broking was regulated by the Insurance Mediation Directive passed by the EU and regulation in the UK was undertaken by the FSA on January 14th 2005.

To become an insurance broker you need.

Expertise in the insurance products you sell. (TC)
Adequate Financial Resources. (PRU)
Knowledge of how to administer products and provide details of yourself to your customers (ICOB)
Apply for Part IV permission from the Financial Services Authority
Be accepted as agents from insurance companies
Have Professional Indemnity Insurance (SYSC)
Have client accounts to look after client money (CASS)
Treat your customers fairly (TCF) and apply high level business standards (GEN)
Be able to compete against existing insurance brokers and insurance companies and bancassurers all of which have tremendous financial resources to attract business.

I would read the FSA handbook - http://fsahandbook.info/FSA/select-handb… - to appreciate the rules we have to abide by.

In the future I can see a situation where only the better off seek advice about their insurance needs and others buy online, direct from insurers, banks and have to look out to see if the cover is suitable.

But it is a very interesting occupation - hope I have not put you off!

Enrique Said:

Is my insurance broker doing his job?

We Answered:

I have actually seen this happen first hand.

I'll tell you why, and then you fire your broker. You can fire the broker, and keep the same company, by just calling the company and asking them for a few names of alternative agents in your area, then just transferring your insurance to a different agent with a broker of record letter. The new agent would be happy to help you with that paperwork.

See, that broker gets paid commission for your policy. But he ALSO gets paid "contingencies" based on his claims. If, as a whole, for that company, the insurance company pays out less than 50% of what they took in, they're going to write him a big fat check for up to 10% of all the premiums he's written with them. So, I've actually seen, real, live, agents discouraging the filing of claims. And not in the best interest of the client (because I'll do that, you don't want to claim every paperclip you lose, the surcharges will KILL you), but in the interest of their commission overrides - called Profit Sharing.

Megan Said:

what does an insurance broker actually do?

We Answered:

http://en.wikipedia.org/wiki/Insurance_b…

Basically, an insurance broker is a middle man (or woman) who links people needing insurance with those who provide it (and they get paid by the insurance provider and/or customer for making the introduction).

Good luck with the interview. Handy tip: If they leave you in the room on your own and the phone rings, answer it politely and pass on the message ;-)