Rather than going straight to insurance companies to arrange for their services, a company may decide to use intermediaries called insurance brokers. The advantages of using such professional insurance brokers and claims consultant are many.
Brokers ensure that all the format technical terms and conditions embody in every contract of insurance being prepared are strictly drafted to suit the peculiar requirements of their client company.
As experts, they have a better knowledge of various insurance and reinsurance not only that all necessary reinsurance and or co-insurance of the clients company’s assets and insurance liabilities are affected.
Since professional insurance brokers are not tied down to any particular insurance company, they throw their client company’s risks open to the entire insurance market and so secure better rates of premium. They also monitor closely trends in customers (clients) needs and preferences and can feed this information back to insurance companies as marketing intelligence and strategy (Okereke, (1995) in Baridam, Pg 332).