Who is an Insurance Broker?

An insurance broker is a specialist in insurance and risk management.

Insurance Brokers act on behalf of their clients and provide advice in the interests of their clients, differently from insurance agents, who work on behalf of an insurer.

A broker will help you identify your business risks to help you decide what to insure, and how to manage those risks in other ways. An insurance broker might specialise in one specific type of insurance or industry, or they might deal with many different types.

Insurance brokers can give you technical advice that can be very useful if you need to make a claim.

Insurance Brokers are aware of the terms and conditions, benefits and exclusions, and costs of a wide range of competing insurance policies, so they can help you find the most appropriate cover for your own circumstances.

Brokers can help arrange and place the cover with the chosen insurer and can often provide advice on how to make the most of your insurance budget.

Regulations

All insurance brokerages in Estonia must have an Estonian Financial Authority (Finantsinspektsioon) licence, and be listed here

Where a broker provides you with personal financial advice then in accordance with the regulations they must:

• Act in your best interests

• Provide you with appropriate advice

• Warn you if their advice is based on incomplete or inaccurate information

• Prioritise your interests where there is a conflict with their own interests (or interests of a related party)

Do you have to pay for the services of a broker?

When the policies are purchased, many insurance brokers get paid a commission. Other insurance brokers act on a fee-for-service basis and negotiate the fees they charge with their clients. Ask your broker to explain the situation to you.

Does it cost more to use a broker?

Not necessarily. It can cost less because brokers have knowledge of the insurance market and can negotiate competitive premiums on your behalf.

Remember, not all insurance policies are the same. You might be able to get a cheaper policy elsewhere, but it may not provide the cover you need if something goes wrong.