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Guide to Insurance Brokers
What is a broker? What do they do? Plus, discover what sets Alea’s team apart from traditional brokers in Hong Kong.
Last update:
19th August 2024
19th August 2024
What is a broker? What do they do? Plus, discover what sets Alea’s team apart from traditional brokers in Hong Kong.
Last update: 19th August 2024
What is an insurance broker?
An insurance broker is a qualified professional who acts on your behalf, serving as a liaison 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?
Insurance brokers and insurance agents are both insurance intermediaries, liaising between policyholders and insurers. 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 10-20% of the annual premiums paid by clients. It’s important to note that your premium stays the same whether you buy insurance through 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 your health and well-being. 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, you can rest assured that we have a solid understanding of what employees expect of their health benefits gained from years of experience working with multinational companies that have international offices. We are committed to helping you find the best insurance plans at the right prices.
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:
- Health insurance in Hong Kong: All you need to know
- Corporate health insurance guide: Essential tips for HR
- Giving birth during COVID-19: What you need to know
And some of Alea’s free guides:
FAQs
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?
It is worth using a broker for insurance because they understand the insurance landscape and can help you identify the best plans for your needs and budget. This saves you 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).
Looking for life or health insurance for yourself, your family or your team?
Do you already have an insurance policy? You could find a better plan!
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This article was independently written by Alea and is not sponsored. It is informative only and not intended to be a substitute for professional advice and should never be relied upon for specific advice.
