Insurance broker
From Wikipedia, the free encyclopedia
An insurance broker sources (brokes) contracts of insurance on behalf of their customers.
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[edit] Insurance brokerage in the UK
The term Insurance Broker became a regulated term under the Insurance Brokers (Registration) Act 1977[1] which was designed to thwart the bogus practices of firms holding themselves as brokers but in fact acting as representative of one or more favoured insurance companies. The term now has no legal definition following the repeal of the 1977 Act. The sale of General Insurance has been regulated by the Financial Services Authority since 14 January 2005. Any person broking insurance can now call themselves an insurance broker.
Insurance brokerage is largely associated with general insurance (car, house etc.) rather than life insurance, although some brokers continued to provide investment and life insurance brokerage until the onset of more onerous Financial Services Authority regulation in 2001.
Insurance broking is carried out today by many types of organisations including traditional brokerages, Independent Financial Advisers (IFAs) and telephone or web-based firms.
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Brokers commonly work for either an individual looking for the coverage that suits them best, or with companies. Brokers act like advisors, providing the best service and benefits that they believe would fit their clientele.
