Review on Direct Insurers And Traditional Insurers

There are mainly two categories of insurance brokers. They are:

1. Direct insurers

2. Traditional insurers.

A brief review on the two categories is put forward below:

Direct Insurers

Direct Insurers are the insurance companies who can save your money and time by eliminating the middle man. They deal with the clients directly instead of paying a broker. This way they are able to reduce their costs and offer lower premiums.

Owing to the fact that these companies do not use brokers to get in touch with the public, they make use of marketing tools in order to entice the customers. They usually advertise their services online or via TV, radio, print media, billboards and so on. Such companies generally have a call centre where prospect clients can make calls to make queries about their services.

The caller needs to give complete details to the company over phone leading to less paperwork involved compared to getting it done via an insurance broker. The general conception is that no commissions are exchanged within the Direct Insurer companies, but the idea is wrong. Some commission is given to the call centre agent when a client signs up, but the thing is it is a one-off event.

Traditional Insurers

Traditional insurers make deals with their clients via paid brokers. They try to develop intimate relationship with their clients so that they can have trust on the company. It also helps the company to offer them with better service as they know their clients better. In case of Traditional Insurers the broker receives commission based on client’s monthly premium.

Both these types of insurers have their own set of advantages and disadvantages. Choose the one that caters to your needs in the best possible manner.