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Don’t get caught up in jargons, just call an insurance brokerage firm!

Insurance brokers in India work towards bringing an organized approach towards searching, analyzing and finalizing an insurance policy

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Representational Image. Image source: Pixabay
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August 26, 2016: In the scenario where risk persists in everything that you do, you just cannot think of moving ahead in life without the right set of insurance policies as your real time savior.

Graph showing Insurance penetration in India and world. Image source: Swiss Re, Sigma

Source: CRISIL’s latest Report on Indian Insurance Industry (Oct 2015) – Details & Review

The table above clearly indicates that insurance penetration in India has not gained much momentum over the last many years. According to the CRISIL’s report on Indian insurance industry, India has an average of 3.1 percent in terms of the life insurance penetration in comparison to the global average penetration for life insurance as 3.5 percent. Further, India’s share of the global non-life insurance industry is just 0.7 percent.

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A major reason for the lesser penetration is the lack of awareness about the importance of different insurance policies. Insurance brokers in India can play a major role in taking India on the path of greater insurance penetration by making their clients aware of the importance of both – life insurance and non-life insurance. Holding expertise for different insurance policies, insurance brokerage firms assist you in taking the best policies for yourself with clarity about the hidden extra coverage and other insurance jargons.

How an insurance brokerage firm creates a difference for good?

Insurance brokers in India work towards bringing an organized approach towards searching, analyzing and finalizing an insurance policy. The five pillars on which an insurance brokerage firm relies upon while serving its clients are:

Expert advice

Insurance brokerage firms are those licensed setups, which can bring the experience and judgment of its expert brokers in getting the best coverage under any insurance policy. They are your personal advisors who first understand your insurance needs and then start hunting for the best policy that covers your individual requirements.

Trust building

Insurance brokerage firms work on the principle of building a relation of trust with its clients so that they can feel free to discuss their individual and business needs for insurance. A brokerage firm’s advice should be free from any biases towards the insurance company and focus completely on the benefits of the policy-holders by getting maximum coverage at best prices.

Representational Image. Image source: Pixabay
Representational Image. Image source: Pixabay

Transparency

Employees at a certified brokerage firm can help you in gaining more information about different insurance firms and the policies they provide. Also, when it comes to comparing policies from different insurance firms, insurance brokers can help in making things sorted by bringing more transparency into the process.

Advocacy for quick claim settlement

Disputed claims can prove detrimental for your peace of mind. So, why not leave the worries of claim settlement on your insurance brokerage firm? In most of the cases, its knowledge about different issues helps in prompt claim settlement. Moreover, an insurance brokerage firm gives you the assurance of not missing out on any coverage out of ignorance.

Making choices available

You need an insurance policy but that doesn’t necessarily mean that you know about every insurance firm and the options available. Here comes the insurance brokerage firm into the scene to help you in knowing and analyzing the various options available. As per your particular requirements, they bring to your notice the policy that provides optimum coverage.

What to look for in an insurance brokerage firm?

As per an article in The Economic Times, the number of insurance brokers in India has risen above 300 after the implementation of broking regulations in 2002. With so many options to choose from, it’s not easy to zero in on one. To make the choice easier, you should look for these two elements in an insurance brokerage firm:

The focus area

If you have individual needs for a policy and your insurance brokerage firm has the experience in dealing majorly with corporate issues, then you are least expected to get the best advice.

Years of experience

More the number of years an insurance brokerage firm has spent in the market, the safer it is to rely upon. Such firms have the experience of dealing with various clients with diverse personal and corporate needs, and their knowledge about different insurance firms is much more extensive.

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It’s good to have someone to advise you on insurance matters, and an insurance brokerage firm can best serve this purpose. All you need to do is to zero in on the firm that best fits your needs and is a trustworthy name in the markets.

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  • Kabir Chaudhary

    When has an insurance firm ever helped an individual ever.

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Insurance in 10 Years Time: What Will the Industry Look Like?

In a decade, there will likely be more payment plans and options. We’ll see more companies offering no or low down payment options and more manageable premiums

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The world of insurance is forever changing. With more payment options and more ways to gain insurance, companies are having to change their tactics and opportunities for individuals. Cars are more affordable and other types of insurance are becoming more wanted than ever before. People want more options, such as auto insurance with no down payment.

What could the insurance industry look like in 10 years time? Will there still be cheap full coverage auto insurance with no down payment? Here’s a look at what the state of the insurance industry is looking like.

More Management Online

Let’s start with technology. Millennials may get a bad rep for some areas of their lives, but they are the growing generation and the one that is shaping all this change. One area they are powerful in is the focus on technology, accepting and building it forward instead of looking at the past.

More people want to manage their financial obligations online. They want to be able to order items online, managing their banking, and even control their stocks.

Gone are the days were everyone will walk into a broker to manage their auto insurance policy. They’ll look at price comparison sites to find the cheapest option and will do as much as possible online. Companies will need to keep up with that. There’s more chance that someone will find a $20 down payment car insurance option now than ever before because of Google searches.

So, there will be more ways to manage insurance and rates online. More companies will build apps for individuals to use. Instead of having to call for a rate, more companies will offer their rates directly online. We’re already seeing this with the price comparison sites and that’s only going to grow.

The Ability to Rely on Up to the Minute Information

As more of our personal details end up digitized, there will be more information available to an insurer. This can help with gaining auto insurance with no down payment. It can also help improve the chances of finding cheaper car insurance.

Companies will be able to access more relevant information. Right now, information is accessed yearly. If you stick with the same insurer, the company won’t ask for a lot of new details. You’re asked to check the current information is correct and given your latest policy quote – usually an increase.

With direct information, you can offer all the latest details about accidents, trips, and other information. Insurers could offer month-by-month policies to help manage finances, and keep the insurance inline with your current needs. This can also work in the insurer’s favor. Should you have an accident, your policy costs will immediately increase.

More Smart Technology in the Car

Something you may have noticed is the rise in popularity of the black box. This will continue to gain traction over the next decade and could be useful for $20 down payment car insurance.

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Insurance in 10 Years Time: What Will the Industry Look Like? Find it out here. pixabay

The black box is something that tracks speed, breaking abilities, and other driving habits. All information will be sent directly to the insurance company. The insurer can then use this information during the coverage year rather than getting information on a yearly basis.

There are positives for both driver and insurer with this technology. For the driver, there’s the chance of proving a good driving recording, which is extremely beneficial for new and young drivers. Those who are considered high risk can prove earlier that they’re a low risk; that their driving skills are good enough to warrant a lower premium.

Meanwhile, insurers can also keep track of driving habits. They’ll be able to check up on the amount of miles driven and whether there are some bad habits that could put someone in the high risk category. Instead of one policy for the year, it’s possible to get new rates each month or every quarter.

This technology would also be good should a car get stolen. The insurer will be able to give the last known details to the police or even offer tracking details to make it much easier to find the vehicle. And let’s not forget a parent’s worst nightmare of a child leaving without telling them where they are going!

Management for Driverless Cars

While not a common reality right now, the interest in driverless cars is growing. Technology is continually tested, and there is a chance that it will become a major player in the auto industry by 2028.

In 10 years time, the auto insurance industry would need to completely change with this in mind. No longer is this about the driver, but about the computer. We could see insurance costs initially rise while the technology is put to the test, but once proven successful, the insurance costs will need to decrease. After all, there’s no longer as big of a risk.

Will insurance even be a mandatory thing by law when the driverless cars come in? Could we see more people relying on third-party insurance only, because there’s a lower risk of them crashing? This is something that will need to be addressed over the course of the next 10 years.

Also Read- Smoking, High BP Increases Risk of Heart Attack Recurrence

More Payment Plan Options

The method of paying for insurance has changed over the years. Now we’re getting more people who want to pay monthly. In fact, there are more people who have to pay monthly. It’s the only way they can afford to budget for their car insurance.

In a decade, there will likely be more payment plans and options. We’ll see more companies offering no or low down payment options and more manageable premiums.

Where do you think the state of the insurance industry will be in a decade? We’ll likely see more companies turning to the technology available and things will need to change as more driverless cars are added. Auto insurance with no down payment could certainly become more viable and popular in 10 years time.