Limitations When You Opt For An Independent Insurance Company

Some people think it doesn't really matter where they buy their insurance. But this misconception could be costing them money, service and protection.

Although most insurance agents specialise in life and health insurance or property and casualty insurance, a growing number of "multi-line" agents sell all lines of insurance. Approximately 1 out of 4 insurance agents are self-employed. Independent insurance agents, or brokers, represent several companies and place insurance policies for their clients with the company that offers the best rate and coverage.

Selecting a policy solely on today's premiums will probably make the consumer more susceptible to rate increases or possible failure in independent companies. The consumers need to take into consideration the term "you get what you pay for".

The consumer must recognise that the company selected must have ample financial resources and/or a strong financial stability to pay claims down the road. A company's financial rating should be fully disclosed by the agent, and the companies should price their products accordingly.

Limits in accessibility:
They are usually based in small offices from which they contact clientsand provide information on the policies they sell. However, much of their time is spent outside their offices, travelling locally to meet with clients, close sales, or investigate claims.

Timings:
Independent agents usually determine their own hours of work and often schedule evening and weekend appointments, which may or may not be convenient for you.

Focus on new clients than old ones:
As they usually work without supervision, sales agents must be able to plan their time well and have the initiative to locate new clients.

Lack of comprehensive financial planning:
Independent agents face increased competition from traditional brokers and bankers as they begin to sell insurance policies. Because of increasing consolidation among insurance companies, banks, and brokerage firms, and due to increasing demands from clients for more comprehensive financial planning, insurance agents need to expand the products and services they offer.

Immediate help may not be readily available
Unlike large companies, which have call centres, smaller concerns do not. Agents who offer better customer service remain competitive. Call centres facilities for customers are important way carriers and agents are offering better service to customers, because such centres provide greater access to their policies and more prompt services.

Specialised Discounts:
Agents who work for a single company and specialize in one brand can quite often get you important and money saving discounts on quotes, and rates since they want you to be their customer for other types of insurance as well. Customer satisfaction is the key to a company's livelihood. So, serving you is their most important concern.