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Know Your Policy – Part 10; Understanding your brokers role better

By Kayser Baird | Durban | February 3, 2017


Your broker is your interface with your insurance company and performs vital functions on the insurance companies behalf.

~Kayser Baird Insurance






What does my broker actually do for me?

In the case of Kayser Baird, almost everything! You get many different types of brokers, from small one or two person brokers that deal with the insurance call center on your behalf, to large global brokers that also have their own insurance licenses, the key is to choose a broker that suits your particular needs and wants. Santam for example is an intermediated insurance company which means that they do very little direct insurance, almost all of their clients are with brokers.

If you are a Kayser Baird client, your broker does 98% of the administration pertaining to your policy. Kayser Baird manages your insurance policy on its own systems, either directly interfacing with the insurance companies system or through a third party insurance management system. It provides quotes, processes amendments, opens and manages claims, appoints assessors and panel beaters and administrates third party recoveries and salvage following motor accidents. In fact Santam and Hollard only do about 2% of the administration for Kayser Baird policy holders.

Is it cheaper to be insured with a broker or with the insurance company directly?

The difference in pricing between direct insurers and brokers comes to more than operational costs alone. If a direct insurer has lower operational costs because of it’s centralized call center environment, this benefit will be quickly eroded if it picks the wrong clients and makes an underwriting loss.

Think about it this way – if one insurer has 1million low risk clients and another has 1million extremely high risk clients, they cannot charge the same premium across their respective books and their operational cost differences will be irrelevant next to this.

What some brokers do better than direct insurers is pick their clients carefully, a lot of new business that brokers write is referral business from their existing clients friends and family. Brokers do not do a lot of advertising whereas certain direct insurers rely on advertising as their main source of new business and attract new clients on price alone.

What benefits do I get being insured with a broker?

Your broker should be as capable as any direct insurer at managing the day to day administration of your policy, where brokers truly excel is at providing focused, high levels of individual attention to clients. Your broker should be able to offer the same or lower premiums than a direct insurer, and provide you with a far higher level of service due to smaller client numbers and more intimate knowledge of individual clients needs.

The most important benefit of dealing with a broker though is the independent interface with the insurance company, insurance companies are notorious for rejecting claims on technical grounds, sometimes unfairly, and although the South African consumer has recourse against the insurers through the insurance Ombudsman, it often requires a broker to help navigate through the complicated process of lodging a complaint.

Many complaints will be resolved by the broker early in the process, simply because insurers understand the powerful role that brokers play in the insurer / client relationship and it is often the brokers early representations in support of a clients complaint that will discourage the insurer from upholding a claim repudiation.

Simply put, brokers are there to stand by the client in the event of a dispute and because of the sometimes complex obligations of a personal or business policy holder, it is valuable to have a broker to support when that marginal claim arises.

How do I get a quote from a broker for my personal or business insurance?

The easiest way is to pick up the phone and give us a call on 031 – 767 8000 or email us on



Kayser Baird offers both Personal and Business short term insurance and is a leading South African broker. To request a quote for your personal insurance please contact us.

Read previous posts in the “Know Your Policy” series;

Part 1 – The Average Clause
Part 2 – All Risks Cover
Part 3 – Residential Buildings Insurance
Part 4 – Your Policy Excess Structure
Part 5 – Convenience Benefits
Part 6 – Load shedding and your personal policy
Part 7 –  Optional extensions on your personal policy
Part 8 – Your motor excess
Part 9 – Underinsurance – Don’t let it happen to you

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