Brokers vs advisers

What’s the difference between an insurance broker and an insurance adviser?

Consumers often ask “What’s the difference between an insurance broker and an insurance company advisor?”

The answer to this question is both simple and very complex at the same time. Yet it is possibly one of, if not the most important questions you need to know to fully understand and thus ensure you are getting the type of advice you require before deciding on the type of insurance you purchase.

In Australia you can purchase insurance:

• From an advisor who represents only one insurer and can only offer that company’s product
• Directly from an insurance company's call centre or from one of their offices
• On the internet
• From the Post Office, Bank or even from a Supermarket through an arrangement that they have with an insurance company to distribute products to their respective customers.
• Through a licenced insurance broker who can offer a choice of coverage from various insurance company’s

Brokers have access to lots of different policies because they deal with a range of insurance companies. 

A good broker will be aware of the benefits, exclusions and costs of competing policies on the market. 

They will also help arrange and place the cover and can often advise on how to make the most of your insurance budget.

An insurance broker’s foremost duty is to his or her client.  An insurance broker works for YOU the client. NOT the insurance company. That’s the difference.