Insurance Brokers Information
Insurance Brokers are effectively and generally small but capable lenders of loans, mortgages and insurance. These are generally smaller businesses with perhaps a handfull of staff who keep their costs low in order to provide a competitive rate for customers.
Generally because insurance brokers are able to keep costs low they can offer very attractive rates, benefits and different criteria than high street lenders like banks and building societies which is there main aim and way of attracting customers.
How to find and Insurance Broker
There are quite alot of insurance brokers dotted around most towns, I know where we are based there are several within a mile or two, these are as described, small business owned and operated by 1 or 2 people but with a lot of clients, this is because once they have acquired a client there is only a certain amount of administration work for each, ongoing staff levels required are lower and a single admin employee could cater for around 100 insurance policies per month, meaning that again costs are kept low.
Brokers keeping costs low
The insurance brokers located here are all off the high street and out of the public eye in most cases, they get clients from refferals, word of mouth and localised advertising. Their CPA is relatively low, profit is high and overheads are low, in turn this creates a very reliable business over time. Though problem starts to come when banks cut lending to the brokers or up their rates, this filters down to the customers and means that the borkers can no longer offer the excellent rates that they could before.
Insurance Policies may cause issues
Insurance is a mine field in terms of small print and added extras, catches and customers not really knowing what the policy entails. In the last few years their has been a lot of press over the controversial financial product that is PPI, also known as payment protection isurance PPI has been thwart with problems. Lenders, though largely high street banks like alliance and leicester have been fined for misselling the product. Claims management companies have been reguarly making PPI claims on behalf of the general public, basically PPI could have been placed onto your loans, credit cards, mortgages etc without you knowing it was there, without you knowing what PPI was or in some cases without the bank giving you the full details about how PPI effected the policy in terms of restrictions etc.
