Frequently Ask Questions

Who is an Insurance Broker?

An Insurance Broker is an insurance professional who in law is an agent of the insured. The broker is expected in practice and in law to act in the best interest of his clients. Primarily, the broker helps the client to identify his insurance needs, and buys the needed insurance on behalf of the client on the most favourable terms and price. The broker is also responsible for the processing and negotiation of claims under the insurances he buys for the client.

Why the need for an Insurance Broker?

Insurance is a highly complex and specialized profession combining major fields of learning such as law, economics, mathematics, engineering, the sciences, business administration etc and encompassing almost every area of human endeavor. The insurance contract itself is one of the most complex contracts that businesses do enter and yet most often it is done without the needed professional advise and scrutiny. To even the practitioners of the insurance profession, insurance sometimes can be a minefield. Therefore, entering into an insurance contract without the needed assistance of an independent professional advisor in the belief that ones interest is securely protected at all times is a misplaced trust. A prospective client cannot find that independent advisor in an insurance company that invariably has a vested interest to protect. In insurance practice the broker is the only independent expert that can lead the prospective insured through the complexities of the insurance market-place to obtain an optimum value for money.

Buying insurance is only one side of a two-sided coin. The other side which is the most important is claims settlement. In that regard the broker’s assistance and expertise in policy interpretation, claims preparation and negotiation is invaluable. Most businesses find this out very late when they are confronted with a major claim negotiation or dispute with insurers and they have to fall back on a broker at a high fee which could have been avoided. Engaging an insurance broker is a norm in sound management practices.

Do Insurance Brokers add to your cost?

The answer is NO. On the contrary the intervention of a broker can help in reducing cost, and ensuring value for money. For the normal and traditional services of an insurance broker the remuneration of the broker is by way of a commission from the insurance company in accordance with world-wide practice and tradition. The premium rate invariably includes an acquisition and servicing cost which the insured pays to an insurance company regardless of whether the insured goes directly to the insurance company or not. It is this acquisition and servicing cost that the insurance company passes to the broker by way of a commission. The services of the broker are therefore free to the insured.

Why choose Horizon Insurance Brokers?

Because we enable our clients to concentrate on their core business whilst we leverage our professional expertise and knowledge of the insurance market to ensure that the right decisions are made in purchasing appropriate insurance security on the most favourable terms and at the most competitive price.