What is an Insurance Broker?
An insurance broker is often described as an independent insurance agent, who works with many insurance firms, to secure the most beneficial policies for his or her clients. The insurance broker may specialize in one specific type of insurance or deal with different fields like health, life, auto, home and other specialized varieties, including policies for pets. Those who opt to handle investment insurance should attend special training and obtain special licenses from regulatory agencies.
This article will review the benefits of using a broker and how the broker can help clients in dealing with insurance matters. It also talks about the Canadian Accredited Insurance Broker or CAIB.
What is the Advantage of Using an Insurance Broker?
In Canada, you can purchase insurance directly from an insurance company or an agent who represents only one insurer and can only offer that company’s products. It is also possible to check the internet for policies that will fit your needs or contact an insurance broker who can offer a choice of coverage from various insurance firms.
An insurance broker’s foremost loyalty is to his or her client since that broker works for the client concerned.
Insurance brokers specialize in insurance protection. These professionals possess an extensive knowledge about the insurance market and can provide the best advice for prospective customers.
What is the Canadian Accredited Insurance Broker?
The Canadian Accredited Insurance Broker (CAIB) certification is a national term designed and provided by brokers. Each Canadian province has an insurance broker association where this certification can be acquired. Brokers must be experts in multiple lines of personal and commercial insurance. This certification represents recognition of their knowledge and expertise in this field.
Brokers are front-line marketing personnel, who selling insurance and deal with the public. Hence, the CAIB certification is needed to give you tools to sell and answer questions from clients regarding coverage. They should be able to formulate recommendations about the insurance that a client needs as well as the manner of payment. A broker belongs to the first line of response in handling claims.
What are the Features of CAIB Certification?
The CAIB certification consists of four courses. The Insurance Broker's Association of BC (IBABC) explains that a Level 1 license qualifies brokers to work in an insurance brokerage firm handling various aspects of personal insurance, such as automobile insurance. Level 2 provides brokers with commercial lines training that include underwriting policies and business interruption coverage. On the other hand, Levels 3 and 4 allow brokers to manage a brokerage firm. Both of these courses address high-level economic and managerial topics associated with insurance.
An examination is given at the end of each course. This is given on a national level. When the broker completes all four examinations, he or she is awarded CAIB certification. According to the IBABC, each exam takes 3 ˝ hours with the broker needing a minimum grade of 60 percent to pass the course. The exam consists of multiple-choice questions. Examination results will be mailed and brokers are given three chances to pass every test.
The Insurance Brokers Association of Canada maintains that the courses were established to accommodate different kinds of students. Classroom instructions focus on group discussion and participation. Immersion courses provide in-depth training within a possible time frame wherein the student can have access to course material online.
Insurance Brokering as a Profession
Opting to become an insurance broker can be a lucrative profession provided the broker takes into consideration all guidelines and sales strategies. Likewise, brokers should abide by all regulatory policies and regulations set forth by the concerned government agencies.