The word broker traditionally refers to a person or entity that acts with respect to a customer or client which is recognized as the principle. The broker uses their knowledge and expertise to advise the client on certain decisions usually regarding purchasing and trading. The broker can either play an advisory role or might also have complete purchasing and decision making power in order to act with respect to the client or principle.
The absolute most commonly found type of brokers are investment brokers and commodity brokers. Individuals who wish to invest their money and trade in commodities seldom have the information and time to control their investment portfolios closely so they employ brokers such as for example these who have much more insight and expertise to act on their behalf. You can find however many other forms of brokers who provide people using their inputs of knowledge and expertise. Other examples of brokers include business brokers, Forex brokers, property brokers, insurance brokers and many more.
The word insurance broker is however an extremely vague one. In the past insurance brokers were just like any broker, but specializing in insurance policies. They’d act with respect to the principal/individual who employed them in order to investigate various insurance options from various insurance companies in order to secure the most effective deals for the principle, as well as help interpret certain formalities within insurance contracts. A trend eventually developed in which insurance brokers didn’t necessarily lookout to discover the best interests of the principle and would favor certain insurance companies. Versicherungsmakler Kassel In fact many insurance companies posed as brokers in order to obtain the preference of deceived and uninformed individuals. Consequently, the word insurance broker has developed into one with a much broader meaning. Today an insurance broker is actually viewed as any person who acts as a realtor to insurance with respect to the principle, aside from whether the agent is acting in the interest of the principle or in the interest of a particular insurance company.
The truth is the word insurance broker is seldom used to refer to a realtor who’s hired by individuals seeking the most effective insurance offers. Today it’s more accurately applied to employees of insurance companies who represent the clients of the company. Insurance brokers still represent insured individuals, but rather they are hired by the insurance company itself to deal with the claims, legalities and transactions involving the insured and the insurance company. Therefore most brokers represent only one insurance company and act in the interests of the insurance company that they represent. The broker essentially acts as an intermediary which communicates the interests of the insured to the insurance company, manages the procedures of coverage and ensures that the insurance contract is adhered to.
In summary, the existence of an broker is quite required to both the insurance company and the insured individual, because they insure that neither party breaches the insurance contract and make sure that procedures are followed. The insurance broker also makes it easier for insured individuals to communicate their interests to the company and successfully make claims should the requirement arise.