What Does an Insurance Broker Do, and Why Use One in Australia?

Most Australians buy insurance one of two ways: directly from an insurer's website, or through an insurance broker. The difference is simple but important. A direct insurer sells you its own products. An insurance broker works for you, compares products from a range of insurers, and helps you choose and manage cover that fits your situation.

What an insurance broker actually does

A broker's job starts before any policy is quoted. The first step is understanding your circumstances: what you own, what you do, where you operate, and what could go wrong. From there, a broker will typically:

• Assess your risks and identify the types of cover you need
• Compare policies and premiums from multiple insurers
• Explain inclusions, exclusions, excesses and limits in plain language
• Negotiate with insurers on your behalf
• Arrange the policy and handle renewals and changes
• Lodge and manage claims from start to settlement

That last point matters most. When you claim, a good broker becomes your advocate, dealing with the insurer, the assessor and the paperwork so you can focus on getting back to normal.

Broker versus buying direct

Buying online is quick, but you are limited to one insurer's products and you are responsible for reading the Product Disclosure Statement and picking the right options yourself. A broker widens the field. Because brokers deal with many insurers, they know which underwriters are competitive for a particular risk, whether that is a refrigerated truck, a hairdressing salon or a home in a bushfire-prone area.

Where brokers add the most value

• Business insurance where multiple covers need to work together
• Specialised risks such as trucks, marine transit, events or cyber
• Situations where a claim has been declined or is being disputed
• Anyone who wants cover explained rather than sold

How insurance brokers are paid

In Australia, brokers are typically paid a commission by the insurer, which is included in the premium, or they charge a broker fee, or a combination of both. Either way, remuneration must be disclosed to you before you buy. Brokers operate under an Australian Financial Services Licence, either their own or as an authorised representative of a licensee, which brings obligations around disclosure and acting in the client's interests.

What to expect from Kasana Insurance Brokers

Kasana Insurance Brokers is an authorised representative of Gravitas Insurance Brokers. We take the time to understand your situation, compare cover from leading insurers, and stay with you from quote to claim. If you are unsure whether your current policy actually protects you, a review costs nothing and often reveals gaps or savings.