The natural business tendency of Insurer dealing direct with an Insured is to give minimum cover at maximum cost. A Broker seeks to reverse this and ensures that his client has maximum cover at minimum cost. Effectiveness varies, needless to say, in these areas. Some classes of business are tariff-rated and the appointment of a Broker may have no effect on either the premium paid or the cover granted

In Nigerian Insurance Market, Workmen’s Compensation Insurance, Motor Insurance and recently, Fire Insurance are all tariff-rated. However, a Broker can still assist in the reduction of premium commitments by deciding when it is judicious to apply for “special rating”, and in the case of motor Insurance, by ensuring that No Claims Discount (NCD) entitlement are properly applied.

The Broker has the entire Insurance Market at his disposal and knows each Insurance company’s strength and its weakness. He does substantial business with all of them and can bring the weight of his account to bear in promoting the interest of his individuals’ clients.

A Broker can assist in the presentation and prosecution of claims and can be of invaluable assistance in tipping the scales in favour of his clients on contentious claims.

A Broker provides an individual service to his client by regularly reviewing his Insurance needs, providing analyses and reports and by regular personal visits to the clients’ premises to keep himself up to date with his requirements.