Insurance brokers play a vital role in developing the insurance sector and they should be embracing new technologies to streamline the process of finding and purchasing insurance policies, writes JOSEPH INOKOTONG.
INSURANCE is very important to any nation’s economic development. Insurance is the only business that exists to sustain other businesses.
Experts are of the view that insurance could be used as a tool to protect a nation’s wealth and having the right insurance coverage may mean the difference between success and failure when faced with any form of calamity such as natural disaster, fire, accident, liability claim or any other form of loss.
Insurance brokers play a vital role in developing the insurance sector. Brokers act as intermediaries between insurance companies and customers. They help customers find the right insurance policies for their needs and they provide advice and guidance on the best options. In this way, brokers can help to develop the insurance sector by promoting an understanding of insurance products and by helping customers make informed decisions.
Brokers are important players in the insurance industry. It is clear that they provide a valuable service and they can help to make the insurance sector more accessible to people. Another important role that brokers play is in providing support and assistance in the event of a claim. They can help customers navigate the claims process and ensure that they receive the benefits to which they are entitled.
Having someone to help through the claims process can be a huge relief, especially during a difficult time. Brokers can also help to speed up the process and ensure that it goes as smoothly as possible. They can be a valuable resource for customers who are dealing with an insurance claim.
However, there are a few other areas where brokers could make some improvements. One is to provide more education and information to customers about insurance products. Some customers may not have a good understanding of the different types of policies and the benefits and risks associated with each one. By providing more education, brokers could help customers make more informed choices.
Another area for improvement is in terms of customer service. Brokers should be responsive to customer inquiries and provide prompt and courteous service.
According to the Nigerian Council of Registered Insurance Brokers (NCRIB), a good insurance broker is supposed to help a prospective client understand and identify his needs, look for the best insurance proposals meeting personal requirements, make the ‘jargon’ found in most insurance contracts comprehensible, to look after smooth adjustment of losses that might occur during the policy period.
The NCRIB explained, “Oftentimes, some insurance consumers misconstrue the role and responsibility of insurance brokers and that of agents. Although, their duties and responsibilities may look similar, there are differences in their operations.
“In the eye of the law, the insurance brokers and agents are all regarded as agents but the two categories have distinct status and responsibilities. In general terms, an agent is a person employed for the purpose of placing the principal in a contractual relationship with a third party. In other words, an agent is someone who acts for another in all those circumstances under which an agency can be assumed.
“Brokers, on the other hand, are a ‘go-between’ between the providers of insurance services, that is, insurance and reinsurance companies and the consumers of such insurance services, who are the insuring public.”
Insurance brokers today are universally recognised as insurance intermediaries employed to use their skills and expertise in arranging insurance protection in the very best interest of their clients who are the proposer or consumers.
A broker is presumed by law to have the necessary knowledge as well as ability to handle all his clients’ insurance problems and to advise the clients correctly and appropriately. Unlike an insurance agent who represents one insurance company, an insurance broker is independent and has access to many insurance companies, theoretically giving its clients the best coverage at the optimal price.
The NCRIB said insurance brokers exist to assist clients with risk evaluation and assessment, advice on types of policies and rendition of personalised insurance services and consultancies. They also recommend and advise on the selection of underwriters based on their strengths and weaknesses.
On clients’ administration, the brokers ensure prompt payment of claims, annual review of the insurance portfolio and the periodic presentation of a summary of insurance cover to clients. They possess the ability to shop for the best combination of cover, tailored to meet the needs of clients at competitive rates.
Brokers also provide technical expertise on developments and innovations within the insurance market, fully guided by the law.
The NCRIB insists that clients do not have to pay more by engaging brokers; if anything, they even pay less for their insurance.
However, it is pertinent to ensure the acquisition of the most suitable coverage because it is easy to get confused amongst hundreds of policies with different conditions, premiums and limitations. This is where professional insurance brokers can help.
Education and customer service are both key to building trust and loyalty among customers. One other area for improvement is in terms of technology. Brokers should embrace new technologies to streamline the process of finding and purchasing insurance policies. By using the latest technology, they can provide a better experience for customers and make the process more efficient.
At present, some people still hold the view that brokers are not making good use of technology. They think many brokers are still using old-fashioned methods to find and sell policies.
However, some brokers are embracing new technologies and finding ways to use them to improve the customer experience. Some brokers are using online platforms to make it easier for customers to find and compare policies. Others are using mobile apps to make it easier for customers to manage their policies on the go.
These developments are positive and are helping to make the insurance industry more customer-focused. In the future, even more technology-driven changes will be seen in the industry. For example, more brokers might be seen using Artificial Intelligence (AI) to provide personalised recommendations to customers. Also, more brokers will be using data analytics to help customers understand and manage their risks.
As technology continues to evolve, the insurance industry is likely to witness more brokers using it to create a better experience for customers. It is an exciting time to be in the insurance industry.
However, like any other enterprise, there are potential downsides to the increased use of technology in the insurance industry.
One potential downside is that the increased use of technology could lead to less personal interaction between brokers and customers. For some customers, the human touch is an important part of the insurance experience. Another potential downside is that increased use of technology could lead to greater privacy concerns. As more and more data is collected and analysed, customers may have concerns about how their information is being used and protected.
The apprehension held by some about the downsides is a valid concern. It is important for brokers to be aware of these potential downsides and to work to address them. For example, brokers could work to create a balance between the use of technology and the need for personal interaction. They could also be transparent about how customer data is being used and protected.
It is possible to strike a balance between the benefits of technology and the potential downsides. It is all about finding the right balance and making sure that the customer experience is the priority. It is an ongoing process, but industry watchers are optimistic that the sector is moving in the right direction.
The optimism is well-founded because the insurance industry is evolving and there are a lot of exciting developments on the horizon. More innovation will be seen in the coming years and the customer experience will continue to improve.
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