What Does A Health Insurance Broker Do?

When looking to purchase health insurance for the first time, you might have noticed several unrecognisable or unknown terms. These terms can sometimes be confusing and make your journey of purchasing insurance more difficult. But it doesn’t have to be that way, and this blog will help you understand what two of these words mean, what they do, and which one you should approach when purchasing health insurance.

These terms are Insurance Agent and Insurance Broker, and depending on where you are from, they can have a somewhat different job role. However, in this blog, you can find the practical job these two insurance dealers do and which one you should approach for your insurance needs.

What is an insurance agent?

An insurance agent advises you on what policy you should buy. They deal with understanding the potential customer’s needs and requirements, choosing the right policy for them, advising them about the different aspects of the policy, including tenure, coverages, premium to be paid, etc. and selling the policy to them.

There are two kinds of insurance agents. The first is an exclusive agent representing only a single insurance provider, while independent agents deal with policies from multiple insurance companies.

What is an insurance broker?

An insurance broker also plays an advisory role but on a larger scale. They don’t sell the insurance but advise you on which is the best for your needs, and they help you budget for the insurance and help compare the aspects of different policies and insurance providers.

Should you buy insurance from an insurance agent or a broker?

You can buy health insurance from an agent and a broker, depending on your requirements. But which one should you approach for what situation? Keep reading to find out.

Depending on these factors, you can choose whether to purchase insurance from an agent or a broker. These factors are usually the time spent on buying insurance, the cost of purchasing the insurance, or the coverage offered by one. Beyond this, there is also the case of representation and lack of knowledge.

Time

The time spent purchasing insurance can vary greatly depending on whom you buy it from. If you know the insurance provider, you want to purchase the policy from or have a general idea about what you are looking for, an insurance agent can help you close the purchase very quickly.

Cost

The policy's cost can also starkly differ depending on whom you buy it from. An insurance agent can offer exclusive discounts otherwise unavailable in the market. While approaching an insurance broker can be more expensive as they charge a brokerage fee over your premium amount.

Coverage

Insurance agents can access certain exclusive plans unavailable from a single insurance provider. In contrast, brokers can offer a customised plan by combining the policies offered by multiple insurance providers to offer greater protection.

Representation

Although an insurance agent has the client’s best interests in mind, they represent the companies they employ. A broker represents the client and not the insurance provider.

Knowledge

An insurance agent has in-depth knowledge about the policies they are dealing with, and they also know exclusive plans and discounts. Healthcare insurance brokers have the ability to compare numerous plans from various insurers to provide accurate advice.

How to purchase health insurance?

If you want to purchase health insurance directly or approach an agent, you can visit the Niva Bupa website and fill in the necessary details. After which, you can receive a call back from an agent. The agent will help you throughout the entire process and advise you on the best plan to get based on your needs and requirements.

Niva Bupa is a leading health insurance provider with more than one crore happy customers with a strong network of more than 10,000 networked hospitals that offer cashless claims, steadily growing further.

Conclusion

Now that you know what a health insurance broker does and the difference between an insurance agent and a broker, you should be able to make the right decision for you and your loved ones when purchasing health insurance.

FAQ

1. How is a health insurance broker different from an agent?

A health insurance broker is an independent professional who works with multiple insurance companies to help clients find the most suitable policy. In contrast, an insurance agent typically represents one specific insurer and promotes only that company’s products. Brokers are client-focused and offer a wider range of options, while agents are company-focused and limited to their company’s offerings.

2. What services does a health insurance broker provide?

A health insurance broker provides a wide range of services, including:

• Policy comparison across insurers based on your needs and budget
• Explaining policy terms, benefits, exclusions, and conditions
• Helping with paperwork during policy purchase or renewal
• Advising on riders/add-ons based on lifestyle and health needs
• Assisting with claims, grievances, and renewals
• Offering support throughout the policy term, not just at the time of sale

3. Can a broker help me with claim-related issues?

Yes, a good broker can actively assist you with claim-related issues. They help you understand the claim process, prepare and submit the required documents, and follow up with the insurance company if delays or disputes arise. Since brokers are client-focused, they aim to ensure a smooth and hassle-free claims experience.

4. How do brokers stay updated on new insurance plans and regulations?

Brokers stay informed through:

• IRDAI circulars and regulatory updates
• Training programs and certifications
• Direct engagement with multiple insurers for product launches and changes
• Insurance industry seminars and webinars
• Regular client feedback and case handling, which keeps them aware of real-world scenarios