Having been in the business for 8 years I believe I can honestly have something to say about this. I have been and agent for companies and now I am a broker for my clients. It really depends on who you ask which is better for the client. The agent will say he is better and the broker will in turn say he or she is. Being a broker I will state that a broker is better for the client than an agent.
The Agent
An agent represents a company’s interest and is compensated for that interest. If it is like this everywhere, a book of current business is given to the agent and he or she is told to go see them and introduce yourself, then when you are done there go knock on the doors next to them and across the street. “Create the need" or better yet “Scare them into the need" is the catch phrase I believe when it should be “Take care of the need." By that I mean take care of your people and they will take care of you. People do need to be aware of their needs but I have been around to many marketing schemes that were made to scare the client.
Another important point to be made is how many families is that agent feeding? More than likely that agent is not only feeding his or her own family but his sales managers’ and district managers’ and so on and so forth. So the next time you see an agent coming ask him how many families are being fed if you were to buy from him.
The Broker
A broker represents many companies with no centralized interest or compensation. The broker in turn is also compensated for their time and effort by the company that gets the business but that is just it, the company that gets the business. Whether you go to company A or B, you the client have the choice based on recommendations made by he broker.
The broker has the capability of finding the right mix for a client, for example, the client’s needs and budget. One company might come back with a mix of products at “X" amount of money a month. This option may be out of the clients reach due to budget constraints, well now the broker can switch to another company to find the most viable option.
The Client
The client is best served because it is not an all or nothing relationship as it is with an agent. The broker has the ability to shop around within his or her portfolio to find the best mix to meet the client’s situation. The broker acts as a go-between for the client and the company. I consider this a win-win situation. I believe that when one has the ability to shop for the client for the best product, the clients’ interest is at heart. A client that becomes a prospect six months later was never a client at all.
To be fair to all parties involved the company and client is only as good as its agent or broker. A bad one can break you and on the other had a good agent and broker can become your best friend and ally.
Raul Ramirez
http://www.gulfbreezeinsurance.com
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