Customers looking to get insurance may get confused by insurance agents and insurance consultants. Do they do the same thing? It turns out there is a difference between an insurance agent and an insurance consultant. This article should help you understand what that difference is, and more importantly, it will help you figure out which type of business associate does what. Must Read: Tomas Von Reckers
WHO IS AN INSURANCE CONSULTANT?
The insurance industry is a massive and complex field, which makes it hard to find the right coverage. An insurance consultant helps customers navigate the ins and outs of this complex field and help them find a policy that meets their needs.
An insurance consultant is someone who got trained to help people find the right insurance policies for their needs. They aren’t brokers and don’t sell anything. However, they have expertise in identifying how different insurances work and what they cover. They can help customers determine the coverage type and find the best policy at a competitive price.
Insurance consultants are not only helpful because they know everything there is to know about insurance but also because they have access to resources that make finding the right policy much easier than it would be otherwise.
Insurance consultants often work with associations or companies that specialise in helping people find affordable coverage options. These organisations have access to information on different types of policies from various companies. They can easily compare those policies for customers.
WHO IS AN INSURANCE AGENT?
Insurance agents are the people who help customers buy insurance. They work for insurance companies, selling policies to customers. They’re usually licensed to sell insurance in the state they work in. An individual who wants to become an insurance agent has to go through training and pass the insurance agent exam after which they get their licence.
They know everything about different types of policies and how much they cost. They usually ask lots of questions to customers about their life, family, assets, and job. This information helps them shop around with different companies until they find one that offers a policy at a price they can afford.
They also help customers understand what they need coverage for. Is it just life insurance? Or would it be better if they got cover for health as well? Customers may also want full coverage on both their house and car as well as liability protection for injuries someone else sustains in an accident involving their vehicle or property. Insurance agents help them decide what’s best for them.
HOW IS A PROTECTION CONSULTANT DIFFERENT FROM AN INSURANCE AGENT?
Insurance consultants and insurance agents are different because an insurance consultant provides advice to clients, whereas an insurance agent sells insurance policies.
Insurance consultants are also known as independent insurance agents because they do not remain employed by the insurer. They usually work for themselves or small businesses that do not have their own sales force. Consultants can get licensed as either life insurance agents or health insurance agents, depending on their expertise.
Their prime responsibility is to assess the risk of insuring a particular person or business and determine the type of policy appropriate for them. The consultant may suggest several insurances to give the client options when it comes time to buy their coverage.
In contrast, an insurance agent usually works directly for an insurer and does not sell multiple companies’ policies as a consultant does. Instead, they offer one company’s products exclusively at their office or home location.
The role of insurance agent is to assist the clients with claims processing and generate leads. They help clients purchase a policy from one specific company based on what they offer at that time.
WHAT ASSISTANCE DO INSURANCE AGENTS AND CONSULTANTS PROVIDE?
When customers have insurance needs, it can be helpful to know what assistance insurance consultants and agents provide. Insurance consultants and agents help them choose the right coverage for their individual or business needs. They also work with customers to determine the amount of coverage that’s appropriate.
Depending on the type of insurance policy, they may also assist with filing claims and other administrative tasks. For customers who want to look for someone to walk through buying a new home or auto insurance policy, an insurance consultant or agent can help.
Insurance agents get a licence from state governments, while insurance consultants do not require one. Consultants often offer lower fees than agents because they don’t charge anything beyond their hourly rate for services rendered, as opposed to commissions on sales.
Consultants may also offer more personalised attention than agents because they don’t have other clients competing for their time.
WHAT IS THE RESPONSIBILITY OF INSURANCE CONSULTANTS AND INSURANCE AGENTS?
Insurance consultants and agents are accountable to their clients and the law. He should adhere to the code of conduct. Insurance consultants and agents have a duty towards their clients, which means they must act in their best interest. It also means they must disclose any potential conflicts of interest and explain how they will be addressing them.
The agent also has to maintain accurate records of all transactions, including all forms of communication between the client and agent. If there is ever a dispute about what transpired between them, whether it concerns an insurance policy or something else, the agent’s records act as evidence in court.
In addition to being accountable to clients, insurance agents and consultants must comply with all applicable laws when offering products or services to consumers. This includes state and local laws that apply to the jurisdiction.