Choosing an insurance broker is an important decision in the purchase of insurance. This guide is designed to offer advice on the process of running a tender for services and negotiating a contract with a broker. The advice contained in the guide is relevant to all organisations, but with a particular focus on large accounts where typically more complex cover is in place. For the smaller organisation, the activities and timeline will remain the same, although less detail may be required to complete a review of current and required solutions.
The role of the insurance broker is varied but includes the proper disclosure of material information to insurers, the negotiation of policy price, coverage levels and wordings, the provision of advice and assistance throughout the duration of the relationship and giving assistance to the buyer in the event of a claim. As the buyer’s gateway to the insurance market, choosing a broker with the right skills, knowledge and market relationships is vital to the success of the insurance purchase strategy.
The broker will become the trusted partner of the insurance buyer. The broker should be able to offer advice on the existing programme and challenge the buyer around new coverage, value added solutions, programme design or innovation. The broker will require full understanding of the buyer’s organisation, its current performance and ongoing strategic plans to ensure cover is held in place and relevant disclosures are made. Because of this, the relationship between the buyer and the broker is key.