Q: Who is an Insurance Broker(IB)?
A: An Insurance Broker(IB) in Malaysia is a corporate body consisting of professionals, providing insurance advice, consultancy and/or placement of insurances on behalf of clients. Insurance brokers bring together insurance companies and those who want insurance. They are most useful to those needing several types of insurance protection and to those whose large risks must be divided among many companies.
Q: Why use an Insurance Broker(IB)?
A: An Insurance Broker(IB) by virtue of being a professional is better qualified to provide you with solutions and/or advice on technical insurance matters. An IB is also liable to you, the client by virtue of an appointment. As such, they would place your interest first instead of that of an insurance company.
Q: What is the difference between an Insurance Broker(IB) and an Insurance Agent?
A: Both are intermediaries. However an Insurance Broker(IB) by virtue of appointment represents their clients whilst an insurance agent represents their principals which are Insurance Companies. An IB would thus be able to deal with any insurer/reinsurer locally or globally to ensure that you get the coverage as per your requirements.
Q: Is there any costs or fees in appointing an Insurance Broker?
A: Most appointments do not incur any consultation fees. However there are circumstances where the appointment is specifically for consultancy only whereby an agreed fee will be payable.
Q: Who governs the practise of an Insurance Broker(IB)?
A: All Insurance Brokers (IB)s in Malaysia are licensed and are governed by the central bank, Bank Negara Malaysia.