Insurance Agent Company

Insurance Agent

The term ‘insurance agent’ is often loosely used to describe anyone involved in the selling of insurance policies. In reality however, there are different kinds of ‘insurance agents’ who offer varying types of services. The three main kinds are insurance brokers, insurance consultants and captive agents:

Insurance Brokers
Brokers are independent financial advisors who work for clients and source suitable insurance products for them. Because brokers are independent, they are not restricted to selling only one company’s products. This independence allows them to source the best or the cheapest insurance policies depending on their clients’ needs and wishes. In return for their services, insurance brokers earn a commission on all policies which they sell. This commission is paid by the insurance companies and not the client. A good example of a large, independent insurance brokerage in South Africa is PSG Konsult.

Insurance Consultants
Insurance consultants are similar to insurance brokers. They too are independent and shop around for insurance products that meet their clients’ needs. However, the main difference between them and brokers is that they are paid directly by their clients and do not receive commissions from insurance companies. This gives them added impartiality as they aren’t tempted to ‘push’ insurance policies that provide them with the most commission.

Captive Agents / Sales Agents
These types of insurance agents are employed by one insurance company to sell its products. A captive agent isn’t allowed to sell policies from any other insurance company. Typically they work from call centres within the insurance company. A good example of this would be the person you would speak to if you contacted a company like OUTsurance or Dial Direct.

To find companies that make use of captive agents and insurance brokers try www.cheapcarinsurance.co.za. The site contains links to insurance companies like OUTsurance who employ captive agents and InsuranceHound who put consumers in touch with insurance brokers, insurance consultants and captive agents.

If you have a need for more information on insurance or need insurance quotes, feel free to contact us.