The field of insurance is an extremely complex one, both through the multitude of types of services offered to individuals and legal entities, and through the existence of thick legislation, with numerous bureaucratic elements, which could give serious headaches to an ordinary user of insurance services. A new type of service has appeared, namely that of insurance brokerage, to meet the needs of customers who call for the conclusion of insurance policies. Insurance brokers are people specialized in fields, who know the profile market in depth and who know how to recommend to clients the best solutions that fit their needs and budget.

In the article below, you will find out the difference between an insurer and an insurance broker, what disadvantages and advantages each option offers to customers, and you will be able to discover how specialized consultancy in the field of RCA and CASCO car insurance can help you.

1. The insurer and the insurance broker

Individual and legal clients who wish to conclude an insurance contract from among the available ones (auto, medical, travel, home, life, etc.) can use the services of an insurance company as well as those of a broker of insurance. The two options have various advantages and disadvantages, the decision having to be made after a more in-depth knowledge of the field. With this in mind, any insurance policy seeker should know the difference between an insurer and an insurance broker in order to get the best terms and conditions for concluding the required insurance.

1.1. What is the insurer?

The insurer is represented by that company that is willing to take certain risks from willing customers, in exchange for them having to pay an insurance premium. According to Romanian laws, insurer means that legal entity authorized under the law to offer insurance services to clients based on a contract concluded between the two parties.

Basically, the person who takes out the insurance policy takes shelter from the occurrence of potentially destructive incidents (car accidents, occurrence of illnesses, damage to homes, thefts, etc.), and the insurance company will bear the losses if they occur. I spend Several insurance companies are active in Romania, offering a multitude of types of policies, which can be accessed by clients interested in protecting their material assets or the health and life of their loved ones.

1.2. What is an insurance broker?

The job of insurance broker appeared relatively recently in Romania, but it has existed for decades in countries with a well-developed insurance system. The insurance broker is a legal person, which obtains from the Romanian state the authorization to act as an intermediary between clients and insurance companies. Law number 32 of 2000 specifies the conditions under which such a trade can be practiced and what types of services their brokers can offer.

Many people confuse insurance broker and insurer as the same thing. In reality, the insurance broker offers insurance services like the insurance company, but differs from it in that it is an intermediary between the client and a larger number of insurance companies, unlike an employee of an insurance company who he only presents the offer of the company where he is employed.

Basically, the insurance broker is a connoisseur of the entire insurance market, thus being able to offer complete and high quality services. In Romania, there are numerous brokerage firms that offer various insurance products and services, both for individuals and legal.

In the category of services that can be accessed by natural persons are:

• Intermediation of the conclusion of car insurance policies, such as RCA insurance and the CASCO type;
• Insurance policies for home protection (mandatory PAD type and optional ones);
• Private health insurance;
• Travel insurance;
• Life insurance;
• Accident insurance.

Legal entities can benefit from the services of specialized brokers for the conclusion of specialized policies:

• Car insurance for fleets;
• Malpractice liability insurance;
• National and international health insurance;
• Insurance for cyber risks;
• Insurance of goods, buildings and equipment;
• CMR and CARGO insurance;
• Agricultural and animal insurance;
• Insurance for employees.

Clients who use the services offered by brokerage agencies have the possibility of choosing between multiple offers and not just from one company.

2. Advantages and disadvantages of insurance broker versus underwriter

Regarding the advantages and disadvantages of concluding various insurance policies by using the two types of services on the market (directly contacting the insurer and using an insurance broker) it is clear that both options have some options that can prove useful. Most specialists agree that the best results can be obtained by resorting to the second option, the one that offers the maximum advantages with minimal disadvantages.

2.1. Advantages and disadvantages of insurance broker

Insurance brokerage firms are increasingly sought after by individual and legal clients who want to benefit from the many advantages they can get when they need to conclude RCA or CASCO insurance for their personal car or fleets owned in the case of legal entities. These advantages include:

• An insurance broker does not work with a single company active on the market, but can present the offers of dozens of companies to clients. There are companies that collaborate with more than 30 national and international insurers and that can mediate the conclusion of more than 700 types of policies useful in various circumstances. Moreover, the information work related to the offers does not have to be done by the client, because the broker already knows the conditions under which they will be concluded, the advantages and disadvantages of each type of policy, thus being able to recommend the right one to the client;
• Insurance brokers have a special relationship with companies operating in the field, because they finalize hundreds of insurances every day, which gives them a special position for negotiating advantageous offers. Discounts can be significant, reaching up to 40% of the regular policy price;
• If it is necessary to conclude several types of policies, a visit to a broker can be advantageous, because it is possible to obtain in one place, through a single visit, those services that could be obtained after perhaps dozens of trips to various companies;
• Consultancy for finalizing the policies is very fast, obviously if you use the specialized broker. His knowledge guarantees the simplicity and speed of the process, which is, of course, a desirable thing;
• By purchasing insurance brokerage services, a close collaboration is obtained throughout their validity period. An example of this is related to RCA type policies. Apart from the actual help offered for signing the insurance contract, the broker will also be available in the event of an incident that leads to material damage and injury to the people involved. Bureaucracy in these circumstances can be very complicated, but the client does not need to get involved with such things, because the broker will provide free advice, in any case;
• The insurance broker is primarily interested in offering the client as many advantages as possible, therefore his recommendations will always be objective.

There is also a downside to using the services of an insurance broker. The expenses involved could in some cases be higher than if one goes directly to an insurance company, because there is also a commission involved that the intermediary keeps as a reward for the work done. Most of the time, however, the extra money paid is recovered through the free time gained, through the many visits to the various insurance companies in order to find the right offer.

2.2. The advantages and disadvantages of the insurer

Some clients who want to conclude various insurance policies choose to use the services of an insurance company, avoiding to involve an intermediary. As a rule, in these cases, the idea of loyalty to a certain brand, known for a long time and which has responded appropriately to the various needs that have arisen, is followed. Most people of this kind have a conservative spirit and are not willing to look for new solutions that might be more beneficial. Another advantage would be the relationship that binds between the insurance agent and the client that appeared in the previous period, which could be an attraction for those who do not want to diversify their group of acquaintances.

The main disadvantage of concluding an insurance policy directly with the company is represented by the fact that the company’s employees have an interest in their company obtaining maximum revenue, not always presenting the best type of offer for customers and thus ending up with a higher investment involved than necessary.

3. What does consulting in car insurance entail?

Consultancy in the field of car insurance is essential for Romanians, because the number of car owners, individuals and legal entities, is very large, and the potential risks, which can arise by traveling on national and international routes, are very high in the conditions in that Romania is one of the countries with a high probability of accidents.

Customers who require a car insurance policy can use two types of insurance: RCA and CASCO. RCA type insurance is mandatory, which all car owners in Romania must take out if they want to use the public road network. The money collected by signing such policies is used to cover the compensation of those people who suffer property damage or injuries due to the fault of another driver. Consulting in the field of choosing the right RCA policy is important for several reasons:

• There are dozens of companies offering RCA policies at different prices. The tendency is to choose the cheapest one, but this can be misleading as the services obtained could be poor. Specialists can recommend the right type of insurance for different circumstances. It is possible that a company’s offer will fit the needs of an individual, but not work properly for a legal entity. Because of this, calling an insurance broker is a solution for a correct choice;
• In some cases, car owners forget that the policy’s validity period is close and find themselves unable to use their cars, because they would expose themselves to serious dangers. The consultation of some brokerage services offers the possibility of concluding a policy in a very short time, including by using the online environment, without the need to travel to the office;
• If there is an incident involving such RCA type insurance, the damage can be reported to the insurance consultant, by phone or online, so that steps can be taken to recover the damages in as short a time as possible;
• Insured clients who have doubts about certain provisions of the contract can consult free of charge if the services of an insurance brokerage firm were used.

CASCO type insurance is useful for car owners who want to protect themselves completely from the consequences of an accident, regardless of whether it is their fault or the fault of other road users. Consulting in this regard ensures a minimum payment of the insurance premium and a quick and fair recovery of the investments necessary to carry out the repairs. Among the insured risks are not only damages, such as knocks, scratches, falling into water, fires, but also for acts of vandalism or even for the theft of the car or some of its components.

In conclusion, people who require an RCA, CASCO or other types of insurance should use the services of a brokerage firm, because the advantages and benefits are maximum.

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