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Can insurance brokers get better rates?

Many individuals and businesses turn to insurance brokers for guidance, seeking their expertise to secure the best policy.

One common question that arises is whether insurance brokers can genuinely get better rates for their clients.  

In this guide, we'll delve into the factors that determine if insurance brokers can indeed secure better rates. 


  • An insurance broker is a professional intermediary who acts independently, connecting clients with insurance providers.

  • There are multiple factors that determine the rates you can get through an insurance broker.

  • It's important to consider things like fees and market conditions when choosing an insurance broker.

  • Using an insurance broker does not guarantee better rates, but there is the potential for higher cost savings.

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Understanding the role of an insurance broker

Before we explore the potential for better rates, we'll clarify the role of an insurance broker.  

An insurance broker is a professional intermediary who acts independently, connecting clients with insurance providers. 

Brokers bring in-depth knowledge of the insurance market, policies, and industry trends.  

They work to understand the unique needs of their clients and leverage their expertise to find the most suitable and cost-effective coverage. 

Factors that influence if you get better rates through an insurance broker 

1. Market knowledge and relationships

Insurance brokers operate in a dynamic market, and their knowledge of industry trends and relationships with various insurers can be advantageous.

Their understanding of the market landscape allows them to identify opportunities for better rates based on the unique needs of their clients. 

2. Negotiation skills

One of the primary roles of an insurance broker is negotiating with insurance providers on behalf of their clients.

Brokers, armed with market insights, can skillfully navigate these negotiations to secure more favourable terms, including better rates.

Their negotiation skills are honed through experience and an in-depth understanding of insurers' preferences. 

3. Access to multiple insurers

Unlike an individual approaching a single insurance company, brokers have access to a wide range of insurers.

This access allows them to shop around and compare policies, increasing the likelihood of finding better rates.

Brokers can leverage their relationships with multiple insurers to obtain competitive quotes tailored to a client's needs. 

4. Bulk buying power

Some insurance brokers handle a substantial volume of business, giving them bulk buying power.

Insurers may be more inclined to offer better rates to brokers with significant business portfolios.

This buying power allows brokers to negotiate terms that may not be accessible to individual consumers. 

5. Understanding underwriting criteria

Insurance providers have specific underwriting criteria that influence the rates they offer.

Brokers, with their industry knowledge, understand the nuances of these criteria.

They can guide clients on how to present their risk profiles in the most favourable way, potentially leading to better rates.

6. Risk management strategies

Brokers offer valuable risk management advice to their clients.

By implementing effective risk management strategies, brokers can help clients mitigate risks and make a compelling case to insurers for better rates.

Proactive risk management demonstrates to insurers that the client is committed to minimising potential claims. 

7. In-depth policy knowledge

Insurance brokers possess comprehensive knowledge of various insurance policies and their intricacies.

This familiarity allows brokers to identify specific policy features that align with a client's needs while ensuring cost-effectiveness.

Their ability to tailor coverage to meet specific requirements can contribute to obtaining better rates. 

8. Advocacy for clients

During the claims process, insurance brokers serve as advocates for their clients.

This commitment to client interests can foster positive relationships with insurers.

Insurers may be more willing to offer better rates to clients represented by brokers who demonstrate a commitment to fair treatment. 

9. Long-term relationships

Insurance brokers often build long-term relationships with both clients and insurers.

These connections can create a sense of trust between brokers and insurers.

Insurers may be more open to offering better rates to maintain positive relationships with brokers who bring them consistent business. 

What caveats do I need to consider?

1. Transparency in fee structure

While insurance brokers work to secure better rates for their clients, it's essential to maintain transparency regarding their fee structure.

Some brokers charge fees for their services, and clients should be aware of these costs upfront.

The overall cost-effectiveness of using a broker should be evaluated in light of potential savings on insurance premiums. 

2. Client-specific factors

The ability of insurance brokers to secure better rates can be influenced by client-specific factors.

These factors include the client's risk profile, claims history, industry type, and coverage requirements.

Brokers tailor their approach based on these factors, and the potential for better rates may vary from client to client. 

3. Market conditions

The broader economic and insurance market conditions play a role in the rates that insurers are willing to offer.

Brokers operate within the constraints of these market conditions and may face challenges in securing better rates during periods of economic uncertainty or industry volatility. 

4. Competitive insurance landscape

The competitiveness of the insurance landscape can impact the rates available.

In highly competitive markets, insurers may be more inclined to offer better rates to attract business.

Insurance brokers can capitalise on this competitiveness to negotiate favourable terms for their clients. 

So, can I get better rates through an insurance broker?

While using an insurance broker does not guarantee better rates, the potential for cost savings and more favourable terms is a compelling reason for many to engage with a broker.

The combination of market knowledge, negotiation skills, and access to multiple insurers allows brokers to secure competitive rates tailored to their clients' needs.

Unbiased can quickly connect you to an insurance broker today.

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About the author
Our team of writers, who have decades of experience writing about personal finance, including investing, retirement and pensions, are here to help you find out what you must know about life’s biggest financial decisions.