An insurance agency is a business model that takes care of selling insurance to individuals and legal entities, that is, to ordinary people and companies.
They have a large number of products: life insurance, health insurance, auto insurance, accident insurance, theft insurance, among others; which are backed by insurance companies.
An insurance agency fulfills an intermediary function between these insurance companies and the final people or companies that hire them. It makes use of the image of insurance companies (logos, stationery, advertising offer) to carry out its commercial work. But, how do they carry out this intermediation work?
It’s a fact that an entity specialized on everything related to insurance is constituted as an agency, and a great example is the Insurance Agency Scottsdale Az, which has been recognized for their total interest in their clients and their right education and guidance. For this reason, it works offering advice to anyone who is interested in seeking the protection of their assets, their businesses or the most precious asset: life.
By putting the accent on the client, the insurance agencies take care of being aware of their needs to provide a timely and effective solution, which is in line with the expectations of protection and well-being expected when contracting insurance of any kind.
Likewise, in the other direction, the insurance agencies manage the client portfolio of the insurance companies and their commercial relations, with the aim of carrying out administrative and commercial tasks that benefit the client taking the insurance.
Insurance intermediaries can operate under 3 corporate models.
Insurance agents are individuals who enter into contracts with insurance companies to carry out commercial mediation between them and policyholders. They must have an identity to perform this function, that is, they must have the technical knowledge certified by the insurance companies in accordance with current regulations.
In turn, they are subdivided into dependent agents and independent agents. The former perform work on behalf of an insurance company to which they are bound by a labor contract. The latter market products from various insurance companies and work through a commercial relationship, which allows them a wide variety of offers to give the client the best option.
Insurance agents are legal persons (companies) or natural persons who enter into contracts with insurance companies to carry out commercial mediation between them and policyholders. They must have the suitability to perform this function, which means that they must have the technical knowledge certified by the insurance companies in accordance with current regulations and must have a minimum share capital of 16 current legal monthly minimum wages. They market products from various insurance companies and work through a commercial relationship, which allows them a wide variety of offers to give the client the best option.
Insurance brokers can only be legal persons, legally constituted as a commercial company with a minimum capital and an investment regime that empowers them to operate, and must be previously authorized by the Financial Superintendence. They function as intermediaries between clients, agents and insurers, and have higher legal responsibility. Therefore, they have solid and reliable administrative, financial and hierarchical organizations with years of experience.
Insurance agents and agencies, by instruction of the Financial Superintendence, are monitored by the insurance companies with which they work. Insurance brokers are directly monitored by the Financial Superintendence, in compliance with good practices, the agreement and resolution of complaints and claims.