CONSUMER ADVICE

Here are some frequently asked questions which people often have in relation to Insurance and Insurance Brokers.

Why should I use an insurance broker?

What is an "IBA Broker"?

What questions should I ask my broker?

What should I get from my broker if I take out an insurance policy?

What are the Principles of Insurance?

Why should I use an insurance broker?
Using a broker gives you the widest choice possible for your insurance.

• Insurance brokers shop around for your insurance to get the best policy for you. By law a broker must deal with a minimum of 5 insurance companies but most brokers deal with approximately ten insurers. This means the broker will shop around each of those companies and get the best deal possible to suit you.
• Your broker also has access to insurance companies who only deal with brokers.
• If you do not want to use a broker then you are free to go 'direct' to an insurance company but remember that company is only offering you it's own products - it is not offering you choice.
  This is true of direct insurance companies, and banks and other companies offering 'direct' insurance. You do not have the choice or value for money offered by a broker checking maybe ten insurance companies for you. To do the same job as a broker you will have to phone all insurance companies on the market and compare their prices and the cover they offer. And do you know what the company are like to deal with? Are they flexible? Efficient? Do they pay claims promptly? Your broker can answer these questions on any insurance company he deals with and will take this information into account when choosing your insurance.

What is an "IBA Broker"?

• An IBA "broker" is a broker who is an accepted member of, and regulated by, the Irish Brokers Association (IBA).
• IBA insists that it's member brokers keep higher standards than other brokers.
• IBA brokers must:
  • be independent (not biased or tied to any one company).
  • have a minimum level of experience and education.
  • Be bonded for €200,000.
  • Have professional indemnity insurance to cover you, the client, in the rare event of the broker making a mistake when dealing with your insurance. Not all brokers offer you this protection.
• Our advice is to deal with an IBA broker to ensure you get the highest standards. IBA brokers offer you service, protection and value for money.

What questions should I ask my broker?
There are a number of important questions that you should ask any broker especially when you are dealing with the broker for the first time.

• Who are you regulated by?
  Your broker should be regulated by the Irish Financial Services Regulatory Authority as an authorised advisor.
• Are you independent?
  If an intermediary is not independent, he may favour one company over another and this may not be to your benefit.
• Is your business bonded?
  Remember the bond is there to protect you, the customer in the event of the broker going out of business.
• Do you have Professional Indemnity Insurance?
  Your broker should have this insurance to protect you, his customer. If he is not an IBA member, ask to see the Certificate of Insurance/Cover Note.
• What educational qualifications do you have?
  At a very minimum your broker should have passed a foundation course in insurance. Higher qualifications which are common among brokers include ACII, FCII, ALIA and FLIA.