There are two types of insurance intermediaries – brokers and agents. They are authorized to provide services that ensure future coverage of damages. It is not allowed for one person to act as both a broker and an agent at the same time.
Requirements for Opening an Insurance Office
The main requirements involve financial security and insurance coverage.
A broker may open an office, unlike an agent. Some of the key requirements include:
A Professional Liability Insurance policy is required to cover damages caused by actions or inactions of the intermediary.
The intermediary must open a special client account to handle client compensations, if needed.
A university degree and professional experience in the field of insurance are required.
The intermediary must have a clean criminal record.
They must not have been declared bankrupt.
They must be eligible to hold financially responsible positions.
The registration is completed upon being listed in the register under the Insurance Code by the Financial Supervision Commission. An application form and several documents must be submitted. If everything is in order, the process takes about one month. After paying the required fees, the intermediary is officially listed and receives a certificate.
Insurance Agents
Unlike brokers, agents represent only one insurance company. The requirements to become an agent are less strict:
A university degree is not required.
A Professional Liability Insurance is required, but the employer may assume responsibility for the employee’s actions.
The agent must not be declared bankrupt.
A client account is not needed, provided that the employer’s account is used.
To begin work, the insurance company must submit an application on behalf of the agent.
How to Gain Experience
Although a university degree is not mandatory, insurance companies tend to prefer candidates with a background in economics or law. Experience can be gained during studies or through internships at active insurance offices. Many companies offer mentoring programs, and the experience gained is valuable for future professional growth.
Business Insights from I&G Brokers
According to I&G Brokers, the role of the broker providing the policy includes:
Always acting in the client’s best interest, not the insurer’s.
Managing risks through tailored insurance programs.
Negotiating favorable coverage terms.
Providing administrative assistance.
Monitoring the claims settlement process.
Acting as a legal representative of the client in insurance matters.
Providing access to the global insurance market.
Maintaining complete confidentiality.
👉 Check for current job openings at iandgbrokers.com and start your career in insurance today!