Worldover insurance brokerage houses are large, sometimes even larger than the insurance companies themselves. They provide reinsurance to insurance companies. In many markets, brokers provide non-life insurance as well as group life and group mortgage insurance.
In countries like Japan, the broker is not empowered to conclude contracts, accept representations, and to receive insurance premiums.
In such cases minimum capital requirements and solvency margins are not needed.
In general an insurance broker would provide the following services:
- Pre sales and after sales service to the customers.
- Provisions of relevant information to the underwriters to assess the risk and decide the premium.
- Design covers that meet the client requirements.
- Recommend risk improvement and loss minimisation measures
- Provide risk management and insurance education
- Collection of Premiums