Their main job is to objectively analyze your situation and use that deep experience to explore the market and determine what is best for you and your family. If from the very beginning your broker is able to easily explain your options to you, you’ve already gained a major advantage.
Why the price doesn’t change
The price you pay for your policy is exactly the same whether you buy it directly from the insurance company or through a broker. The insurance company pays the broker, and this is because they play very different roles in the process: the insurance company focuses exclusively on its own products, while the broker knows the market and represents a broad and diverse base of clients.
“Skipping the middleman” does not get you a discount on your premium; it simply leaves you without an ally for your insurance needs.
Support throughout the policy’s lifecycle
The value of the broker remains throughout the entire life of your policy. This translates into proactive and personalized management, such as contacting you to personally remind you if your credit card has expired or if a payment was missed.
More importantly, it means having an expert to defend and represent you before the insurance company should any difficulty or dispute arise at the time of a claim.
Renewals and market competitiveness
Some policies (like life or health) are products you keep for life, making them highly important financial decisions. Other policies, like auto or property, need to remain competitive as the market evolves.
Your broker should review and requote your policy regularly — at least once a year at renewal time — to ensure you maintain the most competitive terms. Having this ally on your side during every renewal cycle is a great benefit that comes at no additional cost to you.
Regulation and professionalism
The brokerage industry is strictly professionalized. Every broker must complete courses of study, pass rigorous exams, and get certified. Likewise, all brokerage firms are regulated and audited by the Superintendency of Insurance and Reinsurance of Panama (SSRP).
Brokerage, when done right, is a highly beneficial part of the insurance relationship and plays an invaluable role in choosing, managing, and protecting your policies.
Frequently asked questions
Does it cost extra to use an insurance broker?
No. The insurance companies pay the broker, not the client or the policyholder. The price of the product does not change; it is an added value at no additional cost.
Can I change my broker without changing my policy?
Absolutely. You have the right to transfer your policy from one broker to another at any time you want. This does not affect your coverage or any other condition of your policy; it only changes who your broker is.
What happens if I have a claim and don’t have a broker?
You can manage your claim directly with the insurance company, and you have the right to do so. However, given that there is no additional cost, we believe there is a lot of benefit to having a deeply experienced and licensed professional to consult with during a time that can be quite challenging.