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What is an insurance broker?A broker acts as a liaison between you and any number of insurance companies. Brokers are generally well informed about the market and the best deals available to suit particular people. In short, a broker does the research part of finding your car insurance for you. They take your details and determine what offers best suit your needs, and then present you with the best possible option for your requirements. |
| A broker will be able to answer questions for you regarding different car insurance cover options, and can usually offer you assistance if you need to change your policy or make a claim. Some brokers charge for such services, others do not, so it is important to ask for a list of fees from a broker if you are considering using one to get your car insurance. In addition, insurers typically pay commission to brokers on policies sold. |
| Brokers used to be regulated by the Insurance Brokers Regulation Council (IBRC) under the Insurance Brokers (Registration) Act of 1977. The IBRC's duties were taken over by the General Insurance Standards Council in 2001 when Parliament repealed the IBRA. Further changes to the regulation of insurance brokers happened in 2005, when the Financial Services Association (FSA) formally took over the regulation of all finance-related industries, including the provision of general insurance and most of the voluntary associations, including the GISC, were dissolved. |
| When seeking an insurance broker, you should take care to ensure that they are authorized by the FSA before you arrange any insurance coverage through the broker. You can check that the broker is registered by visiting www.fsa.gov.uk/register - you can then enter details such as the firm's reference number or trace the broker using the firm's name and post code. Even online brokers are traceable through the FSA website. |
For more information on insurance brokers, there are two professional bodies which most brokers will be members of, the Institute of Insurance Brokers (IIB) and the British Insurance Brokers' Association (BIBA). Both of these societies offer a good amount of information online, ranging from how to find a local insurance broker to current news in the insurance industry. The IIB's website is www.iib-uk.com and the BIBA site is www.biba.org.uk. |
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