2. Providing Broking Services & Brokers Operation Structures
Topics of Discussion
Providing Broking Services
Skills Required by Brokers
Broking Standard of Integrity
Insurance Products Offered by Brokers
Small Broking Operation Structures
Large Broking Operation Structures
Roles of Each Unit Within The Broking Organization
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3. Providing Broking Services & Brokers Operation Structures
Complex Risks, which one to be covered?
Property
Liability Money
Business E.M.F.
Breakdown Motor
Staff Health
Pollution
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4. Providing Broking Services & Brokers Operation Structures
Providing Broking Services
At the simplest level of service, a broker may:
Provides general advice on personal lines and smaller
commercial risks
Place requested coverage with an insurer, either direct or
through a scheme or binder arrangement.
As the nature and needs of clients become more complex, the
range and scope of services will increase and at the top end of
the market e.g. Multinational Clients / Global Accounts, brokers
may be providing the full range of:
Risk Management Advice
Claims & Loss Control Management Services
Mergers & Acquisitions
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5. Providing Broking Services & Brokers Operation Structures
Skills Required by Brokers
Have strong written and oral communication skills with a focus
on presentation and negotiation expertise
Be a self-starter with good networking skills in order to be able
to relate a diverse range of clients and potential clients as well
as the other stakeholders in the insurance market place
Have an ongoing commitment to strong customer relations
and service principles
Have well developed administrative skills
Have a strong knowledge of insurance products, insurance
technical, broking & risk management skills
Have a sound knowledge of relevant laws, incl. financial
services & insurance law, taxation law, trade practices law,
corporation law and contractual laws and their effect on a
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client’s risk exposures.
6. Providing Broking Services & Brokers Operation Structures
Broking Standard of Integrity
A Broker should not have interests which conflict with the
relationship. If conflicts do exist, broker must make full
disclosure to the client
The client’s interests are paramount
A Broker must make full and frank disclosure at all times
A Broker must keep client information confidential, unless
prior agreement is received from the client
A Broker must not use the relationship for his/her own
personal advantage e.g secret commission and the like
A Broker must maintain the property of the client separately
from the broker’s property e.g. no mixing of property in bank
account is allowed. Must have separate bank account.
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7. Providing Broking Services & Brokers Operation Structures
Insurance Products Offered by Brokers
PRODUCTS / SECTORS TYPES OF CLIENT
Personal Lines and Consumer Home owners / Travelers
Risks Insurance
Commercial Lines
Retailers, Small Business
Operations, Agricultural Risk
Corporate Lines Medium-Sized Manufacturers,
Property Owners,
Professions
Global Lines
Multinational Companies
Risk Management Lines
Global Resource Companies,
Global Financial Institutions
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8. Providing Broking Services & Brokers Operation Structures
Broking Operation Structures
Broking operations come in all shapes and sizes from large
international firms to small family owned businesses.
Whatever the size of a broking operations, their role does
not change!
They are experts in the various insurance products available
in the market and they help clients / insured and identify
insurance solutions and products that best suit their
client’s needs.
Clients may choose a broker firm based on the size of the
operation.
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10. Providing Broking Services & Brokers Operation Structures
How do Client Choose a Broker?
Factors influencing the choice of broker:
the products and services available to them
the remuneration arrangements applicable to their business
the complexity of their insurance requirements, which are a
function of the industries in which they operate
the size of the covers which they require
their broker’s performance in settling claims on time
broker’s reputation in the market, and
competitiveness of the broker’s quotation incl. premium / pricing.
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11. Providing Broking Services & Brokers Operation Structures
Small Broking Operation Structure
STAFF / DIVISION ROLES & RESPONSIBILITIES
Principal / Owner / Director Marketing and Development
Account managers & Client Day-to-day servicing, renewals
services and general administration of
the client base
Claims officers Day-to-day claims handling
Administration / Accounting IT, administration and financial
services management.
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13. Providing Broking Services & Brokers Operation Structures
Large Broking Operation Structure
DIVISION / DEPARTMENTS ROLES & RESPONSIBILITIES
Marketing & Development Markets accounts (risks) to
insurers and develop potential
clients
Client Services Corporate Accounts: consists of a
number of “teams” or “groups”
each allocated a number of
accounts to service and
administer on a day-to-day basis
Commercial, Schemes, Affinity:
“teams” or “groups” allocated
accounts to service and
administer on a day-to-day basis
Aviation & Marine Division Broker the specialized aviation and
marine classes of insurance
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14. Providing Broking Services & Brokers Operation Structures
Large Broking Operation Structure
DIVISION / DEPARTMENTS ROLES & RESPONSIBILITIES
Financial Risks Broker specialized classes of
insurance e.g. Professional
Indemnity, Directors & Officers,
Employers Liability, Trade
Credit Risks, etc.-
Energy, Mining & Construction Broker specialized energy, mining
& construction (CAR / EAR)
classes of insurance
Claims Division Provides claims handling services
from claims reporting until
settlement of claim
Employee Benefits Division Broker specialized classes of
insurance i.e. Hospitalization,
Outpatient, Pension Plan & Life.
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15. Providing Broking Services & Brokers Operation Structures
Large Broking Operation Structure
DIVISION / DEPARTMENTS ROLES & RESPONSIBILITIES
IT, Administration & Accounting Provides general day-to-day
computer and administrative &
financial services management
Human Resource Division Provides general day-to-day human
resource services management
Risk Management Services
Provides advice to clients and
(and Risk Survey) potential clients on the process
of identifying, measuring and
evaluating the probability of
risks occurring and subsequent
outcomes. Also a risk survey
services.
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16. Providing Broking Services & Brokers Operation Structures
NEXT WEEK …
Develop Company’s Vision & Mission Statement
SWOT Analysis
Setting Business Objectives
Budgeting
Monitoring & Evaluating Business Plan
Develop Broking Service Plans
Establishment of Work Practices & Documentation
Broking to Insurers & Security of Insurers
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