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An insurance broker is a professional who offers, negotiates, and sells policies. He acts as
An important role of brokers is to help insurers to assess the types of risks they face. Risks
include natural hazards such as bad weather, hurricanes, tornadoes, fires, and floods. At the
same time, brokers act on behalf of and in the interest of customers. They do comparison
shopping to find the best deals and offer policies from more than one insurance company.
Brokers also help their clients to outline risk management strategies, which are suitable for
their profile. There are different types of risk to look into, including natural disasters, car
accidents, credit risks, cash flow problems, legal liabilities, and others.
Insurance brokers consult clients and gather information for them. This is important as to
understand their specific needs. They negotiate with insurance companies to be able to offer
the best terms and premiums to clients. In addition, they help clients to mitigate risks and
come up with working risk management strategies. For instance, they may have to install lock
technologies, home security systems, surveillance cameras, and fencing to prevent burglary.
They also advise clients on how to reduce their car insurance premiums. This may involve
lowering coverage on old trucks and vehicles, raising the deductible, using one insurer only,
and other strategies. In addition to advising clients, brokers handle policy renewals and