No, as a professional advisor, brokers are entitled to a fee for the services we provide but normally brokers only gets a percentage of the actual premium paid. The brokerage element is extended to brokers by the insurance companies in lieu of these fees. The premiums obtained by brokers are very competitive and are most often very much lower than if the client had gone direct.
Frequently Asked Questions
Do I have to pay extra for your services as a broker?
What is the difference between an insurance agent and an insurance broker?
An insurance agent: -
i. Represents insurance companies, brokers represents clients
ii. Sells insurance products from these DESIGNATED insurance companies who may not be able to provide the appropriate coverages and terms i.e. premium, while a broker will source and purchase the appropriate insurance coverage with ANY insurance company at competitive terms.
Why should I appoint an insurance broker?
An insurance broker is a professional insurance advisor licensed by Bank Negara to provide insurance consultancy services. Insurance brokers have the experience and specialised skills to review the clients' risk profile and recommend appropriate coverages as part of their overall risk management. An insurance broker is in a strong bargaining position to obtain the best available terms from the insurance market.