A broker isn't the insurer's person – they work for the client: acting on the company's behalf under the terms of appointment, from the survey through the quotes to claims. So when does it pay to bring one in, and exactly what do they provide? Factual answers, no spin.
- The broker acts on the client's instructions: comparing several insurers' quotes – the decision is the client's.
- Advice is free of charge for the client: the broker's remuneration is paid by the insurer.
- The service doesn't stop at binding cover: a review on request, change management, and help in claims come with it too.
What exactly does a broker do?
The backbone of the work: I assess the needs and the premises (the survey), request quotes from several insurers, and hand them over in a clear table – with strengths and weaknesses: the table. The decision is always the client's; after that, I handle the paperwork, help maintain the policy on request, and at claim time I help routine cases get moving and help the company, where I can, when a case is stuck or disputed: the claims role.
When does it pay off most?
Where the risk is no longer trivial: several asset groups, a valuable machinery fleet, a mix of leased and owned premises, financed equipment, multiple sites. Where there's no in-house insurance expertise – the owner-manager's time is better spent elsewhere. And where there's already been a bad experience: a disputed claim, disappointment over what was actually covered. A small company is no exception either – that's exactly where there's no reserve to absorb the cost of a poor policy: the "small company" myth.
Remuneration – spelled out
I don't charge the client a fee for advice: the broker's remuneration is paid by the insurer on policies that get bound. That's how the market works – and it gives me an incentive to keep the client satisfied over the long run: an ongoing relationship is what serves my interest, not a one-off sale. What underpins independence is breadth: I work from several insurers' quotes and am tied to none of them. The work is carried out under the supervision of the National Bank of Hungary (MNB), as a registered intermediary – the details can be checked in the site footer.
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