Why use an insurance broker in South Africa

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WHY USE A BROKER

Insurance is all about protection. Safeguarding your business, your family or yourself if something unexpected happens. It's one of the wisest investments you'll ever make. But how do you select an insurance company? How can you be sure which policy is right for your needs? And how do make sense of all that fine print?

A professional insurance broker will first of all seek to understand your insurance requirements and then find the right policy for you. A broker will also explain clearly what is and what is not covered under your proposed policy and will then process your application if you decide to go ahead. In the event of a claim, your broker will take care of all the paperwork and follow up with your insurance company to make sure your claim receives prompt attention. So how can you be sure that a broker is acting in your best interests?

All insurance brokers in South Africa are regulated by the Financial Services Board and are required to be licensed by the FSB. This means that every insurance broker registered with the FSB has to follow strict codes of conduct when arranging insurance.

SOME MYTHS ABOUT USING AN INSURANCE BROKER

MYTH No. 1

You have to pay for the services of an insurance broker
Whilst some brokers will charge clients a fee for arranging an insurance policy, insurance brokers are traditionally remunerated by insurance companies.

MYTH No. 2

You can do a better job arranging your own insurance
Insurance is a legal contract and like any other legal contract could cost you millions without an expert helping you.

MYTH No. 3

Premiums are lower when commissions do not have to be paid to brokers.
Insurers not dealing with brokers often have substantially higher advertising budgets that are often HIGHER than paying commissions.

MYTH No. 4

Brokers are independent and can do anything they like without reporting to anybody
The FAIS Act makes brokers fully accountable for their actions and the FAIS Ombud is there to ensure this happens.

MYTH No. 5

If a broker messes up you have no protection against that.
Apart from the protection afforded by the FAIS Act brokers are required to be insured against making professional errors and the insuring public is within its right to make this enquiry of a broker.