Benefits of Using Insurance Broker
In Malaysia, three types of group insurance are commonly provided by employers to employees as part of their staff benefits. These three types of insurance are Group Hospitalisation and Surgical Insurance (GHS), Group Personal Accident Insurance (GPA) and Group Term Life Insurance (GTL).
Some companies will handle such insurance administration, inclusive of getting quotation, negotiation, claim administration and appeal, etc, directly with the insurance companies. The staff who is in-charge in this matter must then possess some insurance knowledge in order to carry out his job efficiently, especially being able to negotiate with the insurance companies to minimise the cost and widen the coverage.
However, some companies will be using insurance broker to handle their staff insurance or general insurance. The benefits of using insurance broker are as follows:
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They are able to obtain competitive rates and terms because of their expertise and bulk purchasing power.
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They are able to provide unbiased professional opinion, as they are not tied to any particular insurance company.
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They do not charge the employers any fees as they earn their brokerage from the Insurer with whom they placed their business.
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They are a one-stop centre for all types of insurance.
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They are able to provide the information of the latest trend and advise the best coverage of insurance within certain budget.
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They handle all insurance claims administration on behalf of the companies, which would reduce paper work and perhaps manpower cost of the companies.
Insurance broker would be a good source if you are serious about saving your company’s cost on insurance and widen the coverage.
