Consumers are having their heyday since modern technology has actually removed the partition that separates them from the providers. This is very true especially in the area of retailing where the distribution channels has been disrupted by online vending where purchases can be carried out directly from manufacturers instead of the usual middleperson, a dealer, trader, or a merchandiser.
This is the reason why consumers think that they can benefit more from products that are designed for self service or do it yourself because consumers today don’t like the middle man, the third party which also means additional cost.
However, when it comes to Commercial Property Claims, it involves a totally different outfit when it comes to what is important to consumers. While it is true that buying insurance directly or online can still give you the cost, ease, speed, peace of mind and security of personal data, it is still good to first analyze each account so that you will know how they perform when you buy insurance directly or when you buy it through a broker.
Broker pricing is actually better than direct insurance pricing, contrary to popular consumer belief. The reason for this is because most insurance companies give a different rate to brokers because the risk is lower to them. In other words, brokers are professionally trained to choose the right policy for their customers, so the possibility of under insuring the broker’s clients is nearly beyond the bounds of possibility. The correct premium income is maintained while avoiding unnecessary claims.
There is no money savings if you cut out the broker when purchasing insurance. On the contrary!
We will not look at the next category which is ease. While online purchasing of insurance is easy and convenient but using a broker with an online service will be easier for you because he is pro-active than when you are doing it yourself.
When it comes to speed both methods is not so different when it comes to buying insurance. The difference between the two will lie when it comes to midterm changes, documentation requests, and queries which the client might want answered. Unlike brokers, online providers channel all their direct services to large call centers whose staff have little or no real insurance knowledge.
We next compare who is able to give peace of mind that everything is covered. It is not a surprise that brokers are more efficient at cross checking policies than consumers, and they are also very good at educating their customers.
Lastly “Security of personal data”. While it is true that the process of securing personal data is much the same as with direct services or one done online, but the trust conveyed by brokers is much better. Click here to get started!