Insurance Intermediation Service
1. What does Insurance Brokerage mean?
Insurance brokerage is a form of insurance intermediation that can only be exercised by entities licensed by the Albanian Financial Supervisory Authority. Brokerage includes introductory activities for insurance products, negotiation with insurance companies on insurance conditions in the name and on behalf of the client and also on assisting the client to claim compensation in case the event for which the insurance was provided occurs.
Services provided by the Broker are very important for any individual who plans to buy an insurance policy, since the broker serves as a personal client consultant in selecting the right insurance product. Firstly, the broker gets acquainted with the client’s needs, and later based on his needs the broker starts negotiating the best insurance conditions and the lowest price with the insurance companies. At the end of this negotiation process, the broker suggests to the client the best insurance product to choose. Insurance contracts often seem to be difficult to understand by clients, therefore it is the broker’s duty to explain to the client their content in a simple and understandable language.
So consultancy provided by the broker is useful for the client to select the insurance product that best fits his needs and requirements.
2. How does brokerage affect the protection of clients' interests?
The most important principle where the broker’s work is founded is the protection of client’s interests. The broker is an entity independent of insurance companies and the scope of his job is to “find” the best insurance product for the client.
The broker acts in the capacity of client representative during negotiations with insurance companies and ensures the protection of client’s interests by assessing the content of the insurance policy before the client signs it.
3. Who pays the Brokerage Commission?
The broker, is entitled to benefit a brokerage commission for all insurance policies he negotiates. The commission is paid by the insurance company that has issued the insurance policy, chosen by the client following the negotiation conducted by the broker and not the client himself. Thus, despite the fact that the broker provides consultancy to his client, he is not paid by the client but by the insurance company selected by the client.
4. Does Credins Bank hold a special license for Brokerage Activities?
Credins Bank has been licensed to conduct Brokerage Activities in January 2018 and has launched the new activity several months ago.
5. Why choosing Credins Bank over other licensed brokers?
Firstly, it is convent for the client to receive this service from his partner bank, where has been providing him with banking and financial products for years. What Credins Bank offers is a One Stop Shop when it comes to financial products and services, therefore our client would be saving time if the service is received in a bank where he can perform simultaneously other transactions, compared to visiting another brokerage company that would provide, exclusively and solely, the brokerage service.
Compared to non-banking brokerage companies, Credins presents a great advantage due to its size, geographical distribution, large client database which translate into a very high negotiation power.
Thanks to the trained and licensed staff in Insurance Brokerage, Credins Bank ensures an Intermediation Service with the highest professional and ethical standards.