Session 2 Trisakti Ins Biz School Broking

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Session 2 Trisakti Ins Biz School Broking

  1. 1. STMA TRISAKTI, 2009 Topic 2 >>> Providing Broking Services & Broking Operation Structures Calendar Year: 2009 By: Kameswara Natakusumah
  2. 2. Providing Broking Services & Brokers Operation Structures Topics of Discussion Providing Broking Services Skills Required by Brokers Broking Standard of Integrity Insurance Products Offered by Brokers Small Broking Operation Structures Large Broking Operation Structures Roles of Each Unit Within The Broking Organization Slide 2
  3. 3. Providing Broking Services & Brokers Operation Structures Complex Risks, which one to be covered? Property Liability Money Business E.M.F. Breakdown Motor Staff Health Pollution Slide 3
  4. 4. Providing Broking Services & Brokers Operation Structures Providing Broking Services At the simplest level of service, a broker may: Provides general advice on personal lines and smaller commercial risks Place requested coverage with an insurer, either direct or through a scheme or binder arrangement. As the nature and needs of clients become more complex, the range and scope of services will increase and at the top end of the market e.g. Multinational Clients / Global Accounts, brokers may be providing the full range of: Risk Management Advice Claims & Loss Control Management Services Mergers & Acquisitions Slide 4
  5. 5. Providing Broking Services & Brokers Operation Structures Skills Required by Brokers Have strong written and oral communication skills with a focus on presentation and negotiation expertise Be a self-starter with good networking skills in order to be able to relate a diverse range of clients and potential clients as well as the other stakeholders in the insurance market place Have an ongoing commitment to strong customer relations and service principles Have well developed administrative skills Have a strong knowledge of insurance products, insurance technical, broking & risk management skills Have a sound knowledge of relevant laws, incl. financial services & insurance law, taxation law, trade practices law, corporation law and contractual laws and their effect on a Slide 5 client’s risk exposures.
  6. 6. Providing Broking Services & Brokers Operation Structures Broking Standard of Integrity A Broker should not have interests which conflict with the relationship. If conflicts do exist, broker must make full disclosure to the client The client’s interests are paramount A Broker must make full and frank disclosure at all times A Broker must keep client information confidential, unless prior agreement is received from the client A Broker must not use the relationship for his/her own personal advantage e.g secret commission and the like A Broker must maintain the property of the client separately from the broker’s property e.g. no mixing of property in bank account is allowed. Must have separate bank account. Slide 6
  7. 7. Providing Broking Services & Brokers Operation Structures Insurance Products Offered by Brokers PRODUCTS / SECTORS TYPES OF CLIENT Personal Lines and Consumer Home owners / Travelers Risks Insurance Commercial Lines Retailers, Small Business Operations, Agricultural Risk Corporate Lines Medium-Sized Manufacturers, Property Owners, Professions Global Lines Multinational Companies Risk Management Lines Global Resource Companies, Global Financial Institutions Slide 7
  8. 8. Providing Broking Services & Brokers Operation Structures Broking Operation Structures Broking operations come in all shapes and sizes from large international firms to small family owned businesses. Whatever the size of a broking operations, their role does not change! They are experts in the various insurance products available in the market and they help clients / insured and identify insurance solutions and products that best suit their client’s needs. Clients may choose a broker firm based on the size of the operation. Slide 8
  9. 9. Providing Broking Services & Brokers Operation Structures The Major Brokers Slide 9
  10. 10. Providing Broking Services & Brokers Operation Structures How do Client Choose a Broker? Factors influencing the choice of broker: the products and services available to them the remuneration arrangements applicable to their business the complexity of their insurance requirements, which are a function of the industries in which they operate the size of the covers which they require their broker’s performance in settling claims on time broker’s reputation in the market, and competitiveness of the broker’s quotation incl. premium / pricing. Slide 10
  11. 11. Providing Broking Services & Brokers Operation Structures Small Broking Operation Structure STAFF / DIVISION ROLES & RESPONSIBILITIES Principal / Owner / Director Marketing and Development Account managers & Client Day-to-day servicing, renewals services and general administration of the client base Claims officers Day-to-day claims handling Administration / Accounting IT, administration and financial services management. Slide 11
  12. 12. Providing Broking Services & Brokers Operation Structures Small Broking Operation Structure Slide 12
  13. 13. Providing Broking Services & Brokers Operation Structures Large Broking Operation Structure DIVISION / DEPARTMENTS ROLES & RESPONSIBILITIES Marketing & Development Markets accounts (risks) to insurers and develop potential clients Client Services Corporate Accounts: consists of a number of “teams” or “groups” each allocated a number of accounts to service and administer on a day-to-day basis Commercial, Schemes, Affinity: “teams” or “groups” allocated accounts to service and administer on a day-to-day basis Aviation & Marine Division Broker the specialized aviation and marine classes of insurance Slide 13
  14. 14. Providing Broking Services & Brokers Operation Structures Large Broking Operation Structure DIVISION / DEPARTMENTS ROLES & RESPONSIBILITIES Financial Risks Broker specialized classes of insurance e.g. Professional Indemnity, Directors & Officers, Employers Liability, Trade Credit Risks, etc.- Energy, Mining & Construction Broker specialized energy, mining & construction (CAR / EAR) classes of insurance Claims Division Provides claims handling services from claims reporting until settlement of claim Employee Benefits Division Broker specialized classes of insurance i.e. Hospitalization, Outpatient, Pension Plan & Life. Slide 14
  15. 15. Providing Broking Services & Brokers Operation Structures Large Broking Operation Structure DIVISION / DEPARTMENTS ROLES & RESPONSIBILITIES IT, Administration & Accounting Provides general day-to-day computer and administrative & financial services management Human Resource Division Provides general day-to-day human resource services management Risk Management Services Provides advice to clients and (and Risk Survey) potential clients on the process of identifying, measuring and evaluating the probability of risks occurring and subsequent outcomes. Also a risk survey services. Slide 15
  16. 16. Providing Broking Services & Brokers Operation Structures NEXT WEEK … Develop Company’s Vision & Mission Statement SWOT Analysis Setting Business Objectives Budgeting Monitoring & Evaluating Business Plan Develop Broking Service Plans Establishment of Work Practices & Documentation Broking to Insurers & Security of Insurers Slide 16

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