Insurance Adviser vs Insurance Broker: What’s the difference

What’s the Difference

Is there a distinction in the services provided by an insurance broker or insurance adviser?

The straight answer is no. They are one and the same. They are both professionals and experts in helping business owners understand their business risk exposure from an insurance perspective and advise on how to transfer risk to insurance.

What is an Insurance Broker?

An insurance broker is a professional specifically trained in the fields of risk identification and transfer to insurance. Business owners often seek the help of insurance brokers when they are unable to purchase insurance directly from insurers.

The reliance a business has on an insurance broker can depend on the company’s size and the complexity of its insurance needs.

Brokers establish relationships with clients to understand their insurance needs. They provide expert advice and negotiate premiums on behalf of clients for a fee. The fees can vary based on the level of service offered. Brokers may charge a fee only with no commission. Alternatively, they may charge a low broking fee and receive commissions from insurers for the products they recommend.

Insurance brokers seek risk transfer terms and pricing from multiple insurers and underwriting agencies. They act in the interests of their clients by presenting what they know about your company and its risks to insurers. They compare the market, advocate for your company and negotiate with the insurance market to ensure you have the most appropriate insurance solutions for your needs.

What is an Insurance Adviser?

There is no difference in the work of an insurance adviser to that of an insurance broker. It’s another term for the same occupation.

Whether they refer to themselves as an insurance broker or insurance adviser, they are experts in transferring risk to insurance. They:

• advise business leaders, just like accountants or legal professionals, focusing on long-term relationships, risk transfer advice and insurance solutions that support their clients’ success.
• take a holistic approach.
• review all your risks against existing insurance policies, help to streamline policies, and address gaps in your insurance coverage that may leave your business vulnerable.
• may recommend independent valuations to ensure accurate sums insured and explain the risk transfer strategies available to protect your business.
• focus on delivering bespoke risk advice that helps business owners at various stages of their business journey.

For example, they can provide insurance advice for:

• Business expansion or contraction
• New contractual arrangements
• New asset purchases
• Changes to services or business operations

While some business owners choose to buy certain elements of their insurance direct from insurers, there are components of insurance that business owners cannot purchase directly from insurers. In that case, they must seek professional advice.

Some business owners have a heavy reliance on insurance experts because they value their expertise and advice.

What to Consider When Appointing an Insurance Adviser

A business can benefit from professional insurance advice.

While a Google search may reveal a multitude of insurance brokers or insurance advisers, we recommend asking your business network for recommendations.

Be prepared to ask questions about their services, such as:

• How do you assess my insurance needs?
• Do you conduct a site visit to my business?
• Do you have other clients in my industry?
• What are your fees?
• Do you receive insurer commissions?
• How will you service my business in year 2 and beyond?

Based on the answers you receive, you can make an informed decision on whether they provide the value and service you expect long-term.

If you feel they care, are competent and can provide you with clarity on your insurance needs, you’re good to go! If you would like to talk to a professional about your insurance program, contact Clear Insurance and ask about our no-obligation risk and insurance review.