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Insurance management is a general term used to describe an insurance broker or services firm. This type of company typically provides a range of insurance products. The product offering is typically focused on a specific sector of the market, such as businesses or individuals. Insurance is a service that allows the client to purchase protection against specific future perils. The cost of the insurance is offset by the services provided by the company, in the event of a loss.
Within the insurance management sector there are three types of service providers: insurance brokers or consultants, dedicated insurance firms, and financial institution insurance. Regardless of the structure, the role of an insurance management company is the same, to provide access to insurance products and provide advice to potential clients. The insurance industry has grown considerably in the past 10 years, providing a dizzying array of products, services, and coverage. The services offered by an insurance management company are designed to streamline this product offering and simplify matters for clients.
Insurance brokers or consultants have arrangements with a wide range of insurance solution providers. They act as the intermediate service and are responsible for marketing, identifying new clients, working with existing clients, and following up on policy renewals and changes in coverage. Most individuals purchase their insurance coverage through a brokerage service. This flexibility in the insurance management industry allows clients to combine products from different companies to meet all their insurance needs.
Dedicated insurance firms specialize in different areas of insurance, ranging from health to property insurance. This is a very large industry and these firms work directly with specific client groups or corporations. For example, a health insurance provider may not work directly with the public, but instead offer its services to companies with more than 250 employees. The firm purchases the coverage package from the service provider, who then makes it available to employees.
Financial institution insurance products are purchased solely for the purpose of insurance bonds, debt instruments, cash, and other assets. This type of insurance is not available to the public and is exclusively available to this industry. The cost of insurance management provided to these firms is included in the banks operating costs, as this type of coverage is typically mandated by the government. The insurance industry forms an important cornerstone in the personal and business financial system, allowing clients to minimize their exposure to risk through a series of regular payment plans and policies.