Getting around the complicated insurance industry can be very difficult. With so many different plans, providers, and conditions, it can be difficult to know which options are ideal for your needs as an individual or as a business. This is where insurance brokers play a crucial role.
What Does an Insurance Broker Do?
An insurance broker is a person or a company whose job is to:
- Provide clients with independent guidance on the range of insurance options available across various providers; and
- Facilitating the acquisition of suitable insurance policies on their behalf.
Unlike insurance agents who represent a single insurance company, insurance brokers act as independent intermediaries, representing your interests in the insurance market. Key differences of brokers from agents and direct providers include the following:
| Agents: | Brokers: | Direct Providers: |
| Represent a single insurance companyMay not have access to a wide range of options | Are Independent intermediaries who represent your interestsHave access to a wide range of insurers | Offer policies directly to consumersMay have limited customer support |
The Philippine insurance market, characterized by its modest size but robust growth, is shaped by the collective efforts of insurance brokers, agents, and direct providers. In 2023, the market generated approximately 390 billion Philippine pesos in premiums, signifying a notable contribution to the country’s financial landscape.
How to Choose the Right Insurance Broker in the Philippines?
In the market, brokers tend to specialize in servicing larger and more complicated business insurance needs. When selecting a suitable broker, careful consideration should be given to factors such as:
- Insurance Commission Licensure: All brokers are required to be licensed.
- Necessary Qualifications: Brokers are subject to regulations ensuring their competence and trustworthiness
- Required Corporate Names: All brokerage entities must explicitly include the term “insurance broker” or “reinsurance broker” within their corporate names.
- Streamlined Insurance Selection: Brokers act as valuable intermediaries, saving clients time and resources by:
- Expert Guidance: Assisting in identifying appropriate insurers and selecting the most suitable insurance policies to meet specific business needs.
- Cost Optimization: Negotiating competitive premiums and ensuring the best value within the client’s insurance budget.
- Consolidated Insurance Management: By dealing with a single broker, businesses can simplify their insurance administration by:
- One-Stop Shop: Managing all their insurance needs, including property, liability, and employee benefits, through a single point of contact.
- Enhanced Claim Support: Brokers provide invaluable assistance in:
- Navigating the Claims Process: Guiding businesses through the complexities of filing and managing insurance claims.
- Securing Optimal Settlements: Advocating for the best possible outcomes in claim resolutions.
- Proactive Risk Management: Brokers play a crucial role in:
- Risk Assessment: Identifying potential risks and vulnerabilities specific to the client’s business operations.
- Risk Mitigation Strategies: Developing and implementing effective risk management plans to minimize potential losses.
- Improved Policy Comprehension: Brokers ensure businesses fully understand their insurance coverage by:
- Clear Explanations: Providing concise and easy-to-understand explanations of complex insurance policies.
- Expert Advice: Offering valuable insights and recommendations on risk management strategies.
What Are the Common Insurance Products Provided by Brokers?
Brokers are not aligned with any one company and can provide a range of products and services that are accessible in the market, as well as customize insurance packages to meet the needs of their clients.
According to Statistica, these are the types of insurance products that adults in the Philippines have considered purchasing as of January 2023:
Reference: https://www.statista.com/statistics/1299332/philippines-leading-insurance-products-among-adults/
A recent survey of Filipino adults, conducted between December 2022 and January 2023, found that 36% of respondents were considering purchasing health insurance, while 34% expressed interest in life insurance. Notably, positive endorsements from family and friends emerged as a key factor influencing their decision to invest in insurance coverage.
Why Work with a Local Insurance Broker?
While the exact statistics on insurance penetration in the Philippines vary, it’s widely acknowledged that the country has a relatively low insurance penetration rate compared to developed economies. Insurance brokers guarantee help in dealing with significant challenges in terms of financial security and resilience in the face of unforeseen events.
The value proposition of working with a local Insurance Broker:
- Objectivity & Independence: Brokers provide unbiased advice, free from the influence of any single insurance company.
- Expertise & Knowledge: They possess in-depth knowledge of the insurance market, enabling them to make informed recommendations.
- Time-Saving: Brokers streamline the insurance selection process, saving you valuable time and effort.
- Cost-Effectiveness: By accessing competitive quotes from multiple providers, brokers can help you secure the most cost-effective coverage.
- Personalized Service: Brokers build strong client relationships and provide personalized attention to your individual needs.
Why Work with RAROCO Insurance Brokers, Inc?
The current climate of uncertainty necessitates a robust insurance strategy. Partnering with RAROCO Insurance Brokers, Inc., a distinguished and qualified insurance broker in the Philippines, provides access to expert guidance and a comprehensive range of insurance solutions, enabling you to confidently address your specific needs and achieve optimal risk management.
