Important Background Information
Why do you need to use an insurance broker?
An insurance broker can:
- help you to assess and manage your risks, and provide advice on insurance solutions appropriate for your needs;
- help you to arrange, acquire and maintain insurance; and
- act as your advocate in settlement of any claim that may be made by you under your insurance.
In the majority of cases, an insurance broker acts on your behalf as your agent. In some situations the insurance broker may act for insurers.
Insurance brokers can offer you a variety of services, such as:
- assistance with selecting and arranging appropriate, tailored insurance policies and packages;
- detailed technical expertise including knowledge of insurance markets, prices, terms and conditions, benefits and pitfalls of the wide range of insurance policies available on the market;
- assistance in interpreting, arranging and completing insurance documentation;
- experience in predicting, managing and reducing risks;
- experience with claims and settlements; and
- assistance with services related to insurance such as premium funding and risk management reviews.
The Code is designed to set high standards relating to the role of an insurance broker when acting for customers, as well as when an insurance broker may act for an insurer or play a role in relation to services associated with its insurance services.