Guide to Insurance Brokers
What's an insurance broker? How to become a broker in Hong Kong? What do insurance brokers offer? Everything you need to know. Read on!
Reviewed by a licensed advisor
What is an insurance broker?
An insurance broker is a qualified professional who acts on your behalf, serving as a link between you and the insurance company. A broker sources products from their choice of insurance companies, which they can then recommend to you, the policyholder.
In Hong Kong, brokers must be licensed under the Insurance Ordinance (unless exempted). Hong Kong’s insurance industry is regulated by the Insurance Authority (IA), which grants licenses, carries out investigations and inspections, and applies disciplinary action when necessary. Insurance brokers are expected to comply with the Code of Conduct for Licensed Insurance Brokers.
What does an insurance broker do?
To meet clients' needs, insurance brokers have a wide range of responsibilities.
These responsibilities include:
Answering questions relating to insurance
Recommending suitable insurance products to clients
Advocating for the client, especially when it comes to pre-existing conditions and special needs
Negotiating with insurance companies
Assisting clients with insurance applications
Arranging insurance contracts
Helping clients with claim submissions
Reminding clients about policy renewal
Prepare yourself with these 9 questions to ask your broker when you use their service.
Insurance broker vs. agent: What’s the difference?
Both insurance brokers and insurance agents are insurance intermediaries, liaising between policyholders and insurers. However, whereas an insurance broker works on behalf of the policyholder, the insurance agent is appointed by, represents and serves the interests of the insurance company.
In a glimpse:
Insurance broker | Insurance agent | |
|---|---|---|
What they are good at | Comparing plans from different insurers and providing advice based on the client's needs | Selling products on behalf of the insurer they work for |
No. of insurer they work with | Many (no limits) | Usually only one; at most 4 in some cases |
Representing | The client | The insurer |
What do insurance brokers charge?
Typically, insurance brokers are paid by insurance companies on commission. In Hong Kong, these commissions amount to around 15% of the annual premiums paid by clients (for medical insurance) and around 30% for general insurance products such as home, travel, etc. It’s important to note that your premium is the same whether you buy insurance via a broker or directly from the insurance company.
How is Alea different from traditional insurance brokers in Hong Kong?
Specialists in health insurance and life insurance
At Alea, we are committed to unbiased advice and exceptional servicing. Whether you’re looking for insurance for yourself, your family, or your employees, we have years of experience helping people with their health insurance and life insurance needs. By working with international and local insurers, we provide you with your choice of insurance products to suit your budget and needs.
If you run a business, rest assured we have a solid understanding of what employees expect of their health benefits gained from years of experience working with local and multinational companies. We are committed to finding the best insurance plans at the right price.
Deep knowledge of Hong Kong’s healthcare ecosystem
You’ll never be alone navigating Hong Kong’s healthcare landscape, whether you seek services in the public system or private sector. All of Alea’s brokers have a deep knowledge of Hong Kong’s unique healthcare ecosystem. We keep our knowledge up to date by touring hospitals, consulting with doctors and medical professionals, and maintaining a network of hundreds of healthcare practitioners. We are eager to share our knowledge to empower you to take charge of your health.
Comprehensive dedicated after-sales service
At Alea, we believe signing your insurance policy documents is just the start of the next chapter of your health and wellness journey. That’s why we provide comprehensive after-sales support and service.
Whether you’re looking for a medical service provider or need help understanding the terms and conditions in your policy, we are always here to assist you. We’ll help you with claim reimbursements, renewals, and anything in between. In case of hospitalization, we’ll arrange pre-authorization letters and guarantees of payment so you can focus on your health and recovery instead of worrying about paperwork and expenses.
Each company we work with is assigned a dedicated customer care advisor. If your employees have questions about insurance claims, they can contact their advisor for guidance with the peace of mind that their medical affairs will be kept private. We also run seminars to help educate your employees on their health insurance benefits and can help you arrange workplace health and wellness events.
Finally, when it is time to renew your policy, we will do a thorough audit of your existing plan to determine if there might be a plan with better value for you for the following year.
Partnerships with insurers we believe in
We only work with insurance partners that we would recommend to our own friends and family. We have partnerships with over 25 insurers – and you can have confidence that each of them has been tried and tested and earned our trust.
Commitment to empowering clients
We believe education is one of the best ways to empower you when it comes to your health. That’s why we publish free resources and guides on our website and host webinars about topics ranging from the basics of health insurance to giving birth during COVID-19.
Here is a sampling of Alea’s past webinars:
And some of Alea’s free guides:
Who is an insurance broker?
An insurance broker in Hong Kong is a professional licensed by the Insurance Authority to act as an insurance intermediary.
Is it worth using a broker for insurance?
Absolutely! Because brokers are specialised and help you identify the best plans for your needs and budget. This saves you time and money: the work of collecting brochures and quotations from each insurance company directly. Most importantly, because your insurance premiums are the same if you buy insurance through a broker or directly from the insurer, there is no harm in seeking the guidance of a broker.
Why a broker is better than an agent?
An insurance agent serves the interests of the insurance company, while a broker represents the interests of the policyholder (i.e., you).
Written by
Amelie Dionne-Charest
Co-Founder & CEO
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