The international insurance brokers market rose from $90.52 billion in 2021 to $97.67 billion in just one year, growing at a CAGR of 7.9%. It is estimated to rise at a CAGR of 4.5% to $116.52 billion by 2026. The rise in demand for insurance policies speculates the growth of the broker market in the coming time.
As per the IRDAI India, life insurance companies offered 286.48 lakh new people policies in 2019, in which LIC solely offered 214.04 lakh policies, and 72.44 lakh were issued by private companies.
So, if you're in the market for health insurance, you may want to buy a plan through a health insurance broker. While it is not the only means, health insurance brokers are a renowned resource for customers looking for help in finding a suitable policy for themselves.
So, what do brokers do? How do they help you? Read on to find out all about it and get an answer to the most important question "Should I use a broker to get health insurance?"
What Purpose Does A Health Insurance Broker Serve?
A health insurance broker is a specialist in the insurance ecosystem. They work as an intermediary between customers and insurance companies, offering them expert guidance, information on all policies, and a selection of recommended and customized options.
Brokers should be licensed by their state regulatory bodies and earn commissions from insurance companies instead of customers.
What's The Difference Between A Health Insurance Broker And An Agent?
The biggest difference between a health insurance broker and an agent is that a health insurance agent works for one insurance company. They are under a contractual agreement with a health insurance company and are responsible for selling the company's specific policies.
However, health insurance brokers work independently from health insurance carriers; thus, they have broader access to several health insurance plan options. Brokers work with several health insurance companies that pay specific commissions on plans sold to clients.
A health insurance agent and broker are licensed professionals, but a broker's role differs slightly. While agents represent a company, brokers represent customers.
Though agents work for a company, they aim to attend to as many insurance buyers as possible. Hence, there is minimal personalized service. However, brokers are more professional in their approach and offer a very personalized service.
Agents offer the buy price mandated by the company and don’t have any stand on the buyer’s side in case of a dispute. On the contrary, brokers have efficient negotiation abilities and are in a better position to resolve issues on the buyer’s behalf.
Should I Use A Broker To Get Health Insurance In 2023?
68% of insurance buyers did not have one company when they commenced their insurance search (Source: LSA). This increases the need for a health insurance broker to get the best quotes for your insurance policy. A health insurance broker will understand your requirements and help you find the best insurance quotes.
A broker's role comes partly from the challenges of searching through the diverse health insurance landscape, where the information available to people is often complex and incomplete. In all, health insurance markets have high search friction, meaning it is hard for customers to find matching products for themselves.
Naturally, this problem enhances the importance of professional intermediaries. One of the major roles of brokers is to reduce the customer's information by collecting the data for them and helping them navigate a wide range of options and variables.
Furthermore, a broker looks out for a customer through their expert eyes, offering a line of defense against exploiting quotes.
“Healthcare is not a privilege. it is a fundamental right and as important as education”.
What Are The Benefits Of Working With A Broker To Buy Group Health Insurance?
“Health insurance should be a must for all citizens.” Keeping this in mind, here are some benefits of working with a broker to buy group health insurance.
1. Keep updated about market changes
The health insurance industry is consistently changing. Thousands of new plans are added and removed, along with changes in pricing and regulation. It is a full-time job to keep up with the changes. A healthcare insurance broker helps you understand the dynamics of the market.
2. Get unbiased professional recommendations
While the recommendations of an agent are biased and limited to their company, health insurance brokers work with multiple carriers and offer you the best recommendations as per your requirements.
They recognize the ins and outs of doctors, hospitals, deductibles, etc., and find the best match for you. 88% of insurance customers demand higher personalization With a broker, you can meet your customization needs efficiently.
3. Get help with application and enrollment
Similar to securing a loan, applying for health insurance involves an application and enrollment procedure. You must upload documents, offer bank details, and provide more information. Brokers help you enroll as soon as possible.
4. Free services
Usually, the services offered by insurance brokers are freely accessible to customers. Insurance carriers pay brokers through commissions based on a percentage of the premium of the plans they sell. In all, the cost of a broker in buying health insurance from your side is nil.
Hence, customers can expect to be charged only for the additional services they take from a broker, apart from their traditional role.
How To Choose The Best Health Insurance Broker?
So, purchasing health insurance from insurance brokers benefits employers in numerous ways. But the question is, how do you know who the best health insurance broker for your company is?
Group health insurance brokers help you find the best coverage for the needs of employees and their families. A good broker can help you know what your policy will cover, the alternatives available, and their pros and cons.
Read To Know: Top 5 Best Group Health Insurance Brokers In India
Furthermore, expert health insurance brokers offer the benefits of analytical comparisons, perfect market prices, and expert advice under one hub.
To select the best broker, you should:
- Assess your organizational needs
- Evaluate the providers and the policies offer
- Match it with your needs
- Negotiate to get the best quote
- Implement the suitable group health insurance coverage
All you need to do is track the plan and streamline it for relevant results. Choosing the best health insurance plan is important. And it totally depends on you and the brokers' approach to find the best plan.
Loop’s Your One-Stop Solution
Look for the best insurance providers to meet your insurance needs and check out the holistic wellness options. Compare the health plans to get the best quote and secure your employees and their families. And for the best policy selection, take the help of a broker who can help you differentiate between the right and vague ones.
The Loop experts are well-versed in employee health insurance. The added benefits along with the policy ensure employees have access to quality, holistic care. Reach out us to learn more.