According to the ASF (Insurance and Pension Funds Supervisory Authority), there are more than 10,000 insurance brokers in Portugal, a figure that clearly demonstrates the growing importance Portuguese consumers place on personalized service and the ability to choose.
Although insurance is part of everyday life for every Portuguese person, many consumers still think of an insurance broker as nothing more than an “insurance salesperson.” Nothing could be further from the truth.
In fact, the role of the insurance broker goes far beyond simply selling or advising on insurance; in practice, it is, a specialized consultant who represents the client's interests, helping them find the best coverage at the best price, in accordance with current law and market conditions.
To learn more about the role and responsibilities of insurance brokers and why they should be a key consideration in your search for insurance, join us on this journey through the insurance brokerage market.
What is a mediator?
After all, what is the purpose of a mediator?
To answer this question, it is important, first and foremost, to distinguish between two terms that often seem to cause a great deal of confusion among consumers: agent, broker, and mediator.
Here, then, is the meaning of each of these professional categories related to the insurance industry:
Insurance Agent
An insurance agent is a professional who acts on behalf of one or more insurance companies and/or brokers.
In practice, an insurance agent is a legal representative or agent of insurance companies whose role is to sell these companies’ products (insurance policies) under the agreed-upon contractual terms.
Although this is not part of their job description, the agent may, as part of their work, offer advice to the client.
Insurance Broker
An individual or company that, as the name implies, acts as an intermediary in the conclusion of an insurance contract between the customer and the insurer and must be legally authorized by the ASF.
More specifically, the insurance broker seeks to assess the client’s needs and, based on those needs, offer the most appropriate coverage.
Its role, however, does not end there.
Once a client requests their assistance, this professional not only researches and compares different insurance policies but also assists with the execution, implementation, and management of the insurance contract throughout its term.
In addition to helping your client make an informed decision, the mediator will assist them in resolving claims while keeping them informed about current legislation and potential new coverage options that offer better value for money.
In other words, The mediator provides the client with a 360-degree service that remains in effect for the entire term of the contract.
The Role of the Mediator
This professional’s role is to provide clients with the guidance they need to make an informed decision that meets their needs.
This role of searching, comparing, and advising—in strict compliance with ASF guidelines—is accompanied by something that is very important for a consumer who is not familiar with insurance: the translation of technical language.
For example, just as it can help you to Compare life insurance policies linked to a mortgage In addition to comparing your policy with other, more advantageous options available on the market, this professional also helps you understand technical terms such as policy, claim, degrees of disability, coverage, waiting periods, deductibles, and policyholder.
Thus, in a personalized and specialized manner, The insurance broker supports you from the moment you start looking for insurance until the moment you file a claim and need assistance.
Legal and Conduct-Related Obligations
In order to perform their duties, insurance brokers must comply with certain legal and ethical obligations.
Among the most important are:
- Be registered with and authorized by the ASF to perform their work;
- Act with honesty, diligence, and transparency;
- Inform the customer about coverage, exclusions, costs, and fees;
- Assess the client's profile and needs;
- Maintain confidentiality and continue your professional development.
How Can Customers Protect Themselves?
To ensure that you aren't deceived or fall victim to a scam when, for example, you want to purchase comprehensive home insurance for protect your home and its contents or income protection insurance for protect your income must verify that the mediator has:
- Mediator number with the ASF;
- Please confirm that the mediator sends you all the written information.
Conclusion
Purchasing insurance is, as we all know, a very responsible decision. Insurance that does not provide the coverage your protection needs require—or that leaves you high and dry when a claim occurs—is not good insurance and can have serious personal and legal consequences.
Just as you would never consider entrusting a surgery to an inexperienced surgeon operating in your backyard, it is important that a decision as significant to your life as protecting your life and your assets with insurance be left to competent professionals.
So don't cut corners. When you need to purchase insurance, always use registered brokers with a proven track record in the Portuguese market, as is the case with EXS Seguros, a mediator with more than 25 years of experience and has already been recognized as one of the TOP 5% Best SMEs in Portugal.
In the EXS Insurance, we believe that a knowledgeable insurance broker is the best ally for anyone looking to choose the right insurance for their needs.
