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What is Insurance Management?

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  • Written By: Carol Francois
  • Edited By: Heather Bailey
  • Last Modified Date: 31 August 2016
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    Conjecture Corporation
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Insurance management is a general term used to describe an insurance broker or services firm. This type of company typically provides a range of insurance products. The product offering is typically focused on a specific sector of the market, such as businesses or individuals. Insurance is a service that allows the client to purchase protection against specific future perils. The cost of the insurance is offset by the services provided by the company, in the event of a loss.

Within the insurance management sector there are three types of service providers: insurance brokers or consultants, dedicated insurance firms, and financial institution insurance. Regardless of the structure, the role of an insurance management company is the same, to provide access to insurance products and provide advice to potential clients. The insurance industry has grown considerably in the past 10 years, providing a dizzying array of products, services, and coverage. The services offered by an insurance management company are designed to streamline this product offering and simplify matters for clients.

Insurance brokers or consultants have arrangements with a wide range of insurance solution providers. They act as the intermediate service and are responsible for marketing, identifying new clients, working with existing clients, and following up on policy renewals and changes in coverage. Most individuals purchase their insurance coverage through a brokerage service. This flexibility in the insurance management industry allows clients to combine products from different companies to meet all their insurance needs.

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Dedicated insurance firms specialize in different areas of insurance, ranging from health to property insurance. This is a very large industry and these firms work directly with specific client groups or corporations. For example, a health insurance provider may not work directly with the public, but instead offer its services to companies with more than 250 employees. The firm purchases the coverage package from the service provider, who then makes it available to employees.

Financial institution insurance products are purchased solely for the purpose of insurance bonds, debt instruments, cash, and other assets. This type of insurance is not available to the public and is exclusively available to this industry. The cost of insurance management provided to these firms is included in the banks operating costs, as this type of coverage is typically mandated by the government. The insurance industry forms an important cornerstone in the personal and business financial system, allowing clients to minimize their exposure to risk through a series of regular payment plans and policies.

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JaneAir
Post 5

@indemnifyme-You are absolutely right. My husband and I took advantage of insurance management services awhile ago and we've never looked back.

I'm so grateful we decided to get serious about our insurance. When we sat down with the insurance manager to go over our current policies we discovered we were woefully underinsured!

We had most of our liability limits at the state minimums which we learned don't go very far in the event of an accident.

We also learned about some types of insurance we didn't even know existed! Since we're homeowners as well as car owners we decided to also get a Personal Umbrella policy. It wasn't terribly expensive and it will cover us in case our liability limits on our other policies are used up in a lawsuit.

My husband and I sleep a lot more soundly knowing our insurance is in good order!

indemnifyme
Post 4

I think hiring an insurance manager is a great idea for individuals. I work in the insurance industry and it's been my experience that most people don't really understand what insurance is and how it works.

The average person knows they are required by law to have certain types of insurance such as home or auto. But that's it. And it doesn't help that many insurance companies don't take the time to educate their customers about their policies.

The great thing about an insurance manager is the insurance manager works directly for the consumer not the insurance company. Yes, insurance managers are trying to make a living too. But since they work for the customer and not the insurance company an insurance manager will spend a lot more time educating the customer.

wander
Post 3

Does anyone know if it is better to get insurance from your bank or from a straight insurance company? Or is your bank really just an intermediary between you and the insurance broker?

I would like to go into an insurance management broker with a good idea of the pros and cons of dealing with them, verses just getting everything through my local bank.

My bank has been good in terms of fees and services so far, and I would certainly consider them a viable option, but wonder if a company that specializes in insurance would be a better bet.

drtroubles
Post 2

If you are in need of insurance and are thinking of speaking directly with an insurance management company it is a good idea to get some quotes online first.

Insurance is at its core a competitive business, and shopping around can often find you a better deal. Whether it is for health insurance, car, home or libel, knowing what available and what the cost is remains key to getting a good deal.

There are also more bundle packages these days, just like with your cable and Internet service. You can mix and match services and pay a lower fee.

Go armed with knowledge to your meeting with an insurance management agent in order to get the best package.

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