What is the difference between an insurance company and an insurance brokerage company

June 15, 2021

 

Isn’t every company that sells insurance policies called an insurance company?

 

Insurance companies refer to companies that will launch their own new products (insurance plans). These companies usually have a larger scale. They will arrange everything from product development, front-line sales, underwriting, claims, complaints, and actuarial calculations. To ensure compliance with the requirements of insurance industry regulations and ethical standards. These companies will arrange their own staff to sell insurance policies, and will also cooperate with some insurance brokers to outsource the sales work to them. Common insurance companies include: Manulife, Prudential, China Life, AIA, etc.

 

An insurance company can also be called an “Insurer”, because the insurance company is the one who provides protection behind all the insurance policies on the market. If you need to make a claim, the one who pays is the insurance company. The person who purchases the policy is the “Policy Holder”. In the insurance industry, the word “person” does not necessarily mean a natural person with flesh and blood and human organs. “Person” can represent both a company and a natural person. Therefore, “insurer” and “Policy Holder” are not necessarily natural persons.

 

What is an insurance agent?

 

As mentioned earlier, insurance companies will also sell their own insurance products. Insurance agents will be categorized into independent agents or hired agents. In many cases, insurance companies will “appoint” some “Insurance Agents” to sell insurance policies. Speaking of entrustment, in fact, these insurance agents are not the “employees” of the insurance company, and the relationship between the two is a cooperative relationship, and the agents are self-employed to complete the sales tasks for the insurance company, therefore the the saying “employed” insurance agents that is commonly said in the market is not necessarily accurate. Insurance agents can also refer to an agency company or an agent that is a natural person. 

 

Insurance agents represent the insurance company to open up the source of customers, provide the company with services such as selling insurance products and answering claims issues for customers. It mainly represents the interests of insurance companies, not the interests of policyholders. Insurance agents generally only sign cooperation agreements with one or several insurance companies. If the agent only cooperates with one insurance company, the two contracts will specify that the agent can only sell the products of that particular insurance company. Insurance agents mainly sell long-term insurance such as life insurance and critical illness insurance, so they can get more support from insurance companies.

 

Insurance broker? Is it a role like a star manager?

 

Insurance brokers and star managers have completely different meanings and roles. As mentioned above, the term Insurance Brokers can refer to companies or individuals. Insurance brokers are companies that sell other people’s insurance products. Usually, a brokerage firm will cooperate with more than one insurance company. The broker can provide products from multiple insurance companies for customers to choose from. After the insurance policy is sold, the insurance company will share the profits with the insurance broker company. Common insurance brokerage companies include: Convoy, Everbright Sun Hung Kai, AMTD, etc.

 

The insurance broker selects suitable insurance products on behalf of the client. The word “ insurance broker” can refer to an individual or a company. It is completely independent in identity and does not represent any insurance company. General insurance uses brokers to contact customers, such as car insurance, marine insurance, and fire insurance, which mainly represent the interests of policyholders rather than the interests of insurance companies. Insurance brokers have cooperative relationships with multiple insurance companies. For a broker, the more insurance company products they can sell the better. They do not have exclusive sales agreements with insurance companies. Therefore, insurance brokers have an advantage in product diversity and can objectively provide customers with products from multiple companies for purchase.

 

What does insurance intermediaries mean?

 

Insurance intermediaries generally refer to insurance agents (individuals) and insurance brokers (individuals), because these two types of persons only promote insurance company products to customers, and do not directly contract with customers or provide insurance compensation.

 

Where can you buy insurance? 

As long as you are able to find an insurance intermediary who is willing to thoroughly explain the products they are selling (agents, brokers, or insurance salespersons in banks are also included in this instance), you will be able to buy an insurance plan that suits your needs with a peace of mind. You can ask friends if they have any recommended insurance intermediaries, if not, you can try to take initiative and do some searching on the web.   

How can we help?

2CExam provides HKSI LE, IIQE, EAQE and SQE related exam preparation materials. We sell mock question banks for IIQE Papers 1, 2, 3, 5 and MPFE in Chinese and English; and bibles for IIQE Papers 1, 2, 3, MPFE in Chinese. We also offer 1 on 1 tutorial services. Besides, we have also made free tutorial videos for IIQE Papers 1, 2, 3 and MPFE and posted on public channels such as Youtube/ Bilibili/ Tencent/ Iqiyi. 2CExam has been an exam training expert for years. Should you need any help please visit www.2cexam.com or contact us through:

Phone +852 2110 9644 Email: info@2cexam.com Wechat: hk2cexam WhatsApp: +852 9347 2064

Latest Article

Categories

過往文章

Contact US

  • Phone:

    +852 2110 9644

  • Email:

    info@2cexam.com

  • WhatsApp

    +852 9347 2064

  • WeChat

    hk2cexam

Interesting Articles

HKSI LE Securities Exam Info For Dummies

September 23, 2021

  HKSI LE Securities Exam Info For Dummies What papers should I take   The differences between a SFC Responsible Officer (RO), HKMA Executive Officer (EO) and a Sale Representative (Rep) https://2cexam.com.hk/a1061_eng/   Which paper I should take: https://2cexam.com.hk/A1064_eng/   Waiving LE Papers 7-12: https://2cexam.com.hk/A1015_eng/   FAQ about exemption: https://2cexam.com.hk/A1018_eng/   Exam Registration   Registration…

Why do so many people choose 2CExam’s products and video classes?

September 17, 2021

2CExam is excellent at preparing candidates for professional examinations. Why do so many people choose 2CExam’s products and watch 2CExam’s video classes?     2CExam provides a large number of Youtube video classes, including HKSI LE Papers 1, 2, 6, 7, 8, 12 Chinese courses, HKSI LE Paper 1 English courses, IIQE Papers 1, 2,…

What are bibles offered by 2CExam? Are there any questions included?

September 15, 2021

Do bibles include practise questions? Bible and Pass Paper Question Bank are two separate products. “Bible” is composed by us according to HKSI’s study manual and does not consist of any mock questions. It is a study note available in Chinese only as of now. “Pass Paper Question Bank” includes questions prepared by us, with…

How are mock questions written by 2CExam? Are the questions past paper questions? What are the specialties and advantages of 2CExam’s question banks?

September 14, 2021

How are mock questions written by 2CExam? Are the questions past paper questions? Due to intellectual property issues, 2CExam mock questions are not copied from the past papers, but composed by their own editors. The questions are different from the questions you are going to see in the actual exam. If they bear any resemblance…

How Do You Get a Refund If You Bought 2CExam’s Products and Failed the Exam?

September 10, 2021

There’s a money-back guarantee for 2CExam’s products? 100% full refund? Do they really refund? Absolutely we do refund. We only make promises that we can keep. As long as candidates follow the instructions on the terms and conditions of Money-back Guarantee, we offer 100% full refund. Why are we so confident? It is because based…

How to Use 2CExam Pass Paper / Mock Question Banks?

September 8, 2021

  Do you need to take the HKSI LE securities exam / IIQE insurance exam / EAQE, SQE real estate exam? Are you upset about how to stuff the considerable knowledge into your brain? 2CExam is here to help!   Our motto is “Despise Learning, Secure Passing!” Our company provides various exam related products and…

Can Top Up Degree be exempted from HKSI LE securities examination? Can I be exempted without previously studied finance?

September 7, 2021

  The Guidelines on Competence of the SFC specify that as long as students meet the specified level of academic qualifications and/or work experience, they can be exempted and do not need to take the HKSI LE Securities Examination Papers 7-12. Exempted students only need to take the HKSI LE paper 1, which saves time,…

Why would it be a disadvantage for foreigners to take the IIQE exam?

September 6, 2021

  Some students who have taken the exams several times may pay attention to both the Chinese and English questions simultaneously, they will find that the content of the questions in Chinese or English exam is actually the same. Sometimes the topics are more difficult to understand in Chinese, and some topics are more difficult…

Why is it a disadvantage for foreigners to take the HKSI LE securities exam?

September 3, 2021

  The HKSI LE exam provides two languages, Chinese and English, and both are provided during the exam.   Some students who have taken the exams several times may pay attention to both the Chinese and English questions simultaneously, they will find that the content of the questions in Chinese or English exams is actually…

Which IIQE exam is easier? The English version or the Chinese version?

September 2, 2021

  From time to time, students who purchase mock questions will ask us whether it is better to take the IIQE exam in Chinese or English?   Some students who have taken the exams several times may pay attention to both the Chinese and English questions simultaneously. They will find that the content of the…