Local vs. National Insurance Adviser: Which One Should You Hire?

Choosing the right insurance adviser can be confusing, especially if you’re not familiar with anything related to insurance. Whether you’re looking for an insurance adviser for your business or personal matters, there are many things you should consider.

The first thing to consider is whether you’re hiring a local or national insurance adviser. Both options have different benefits, so you should take your time before choosing. In addition, you need to know the pros and cons of each option so that you can make informed decisions based on your needs.

In this article, we’ll get to know the differences between local and national insurance advisers.

What Does an Insurance Adviser Do?

But before we dive into the differences between local and national insurance advisers, we should first understand the role of insurance advisers.

An insurance adviser mediates the transaction between the policyholder and the insurance provider. Although you can directly get insurance from an insurance provider, you can get the coverage you need once you hire an insurance adviser.

Local Insurance Adviser

Local insurance advisers handle insurance-related business in a specific area. Usually, they work on their own, without any relationship with big companies. In addition, they are aware of the latest offerings of various insurance companies that can help a specific area or community.

Advantages of Hiring of Local Insurance Advisers

1. Personalised Service

Local insurance advisers have a small client base, which means they each can receive the best service they expect. For instance, during your initial consultation, you can easily grasp how the adviser handles their clients since they can give you an overview of the process.

2. Knowledge of the Local Market

Local insurance advisers know how the local market works, including the common risks of being in the community. For instance, if you’re availing of business insurance, and the area is prone to flooding, the insurance adviser can offer you coverage that can help you in case your business encounters a flood.

3. Face-to-Face Interaction

When you hire a local insurance adviser, you can often meet them in person. Whether it’s for initial consultation, filing for claims, or updating your policy, you can meet with them whenever you want to.

4. Support for Local Economy

Hiring a local insurance adviser isn’t just beneficial for you but also for the local economy. Aside from taxes and other financial help, local businesses often participate in fundraisers and local events that can help improve the community.

Disadvantages of Hiring Local Insurance Advisers

1. Limited Resources

Local insurance advisers may have limited types of insurance coverage, and they may not have the same connections and networks as national insurance advisers. However, if the type of insurance coverage the local insurance adviser can offer fits your needs and preferences, then it’s a great match.

2. Higher Costs

Concerning the limited connection, the purchasing power of local firms isn’t also the same as the national insurance advisers. In this case, you might end up having higher premiums. However, if your local insurance adviser has enough network outside the community, you can still get the negotiable price of premiums.

National Insurance Advisers

National insurance advisers often work with various insurance providers from different regions and states. Usually, these insurance providers are large companies, which offer their products directly to their clients. However, one good thing about hiring a national insurance adviser is that they know everything about the world of insurance.

Advantages of Hiring National Insurance Brokers

1. Various Options

Since national insurance advisers often work with huge insurance advisers, you have a wide range of insurance coverage at a reasonable price. Since the competition is stiff, insurance providers create many ways to increase the number of their clients. Some of these ways include having bundles and packages when you avail of comprehensive insurance coverage.

2. Specialised Expertise

A national insurance adviser firm usually has various departments with different specialisations. For instance, if you need to avail of both business insurance and health insurance, you can go straight to a national insurance adviser firm, and visit two departments depending on your needs.

3. Advanced Technology

As a national insurance firm has a huge office, many clients, and wider networks, they also usually use advanced technology. This allows them to keep a database, provide online quotations, and seamless claiming process.

4. Better Negotiation Power

As national insurance advisers receive many clients, they also have a higher negotiation power. Besides, as the number of clients can bring in various insurance providers, it just makes sense that they can easily negotiate with the companies.

Disadvantages of Hiring National Insurance Advisers

1. Less Personalised Service

With the large number of clients, it’s impossible to look after each one of them all the time. In addition, there are cases when they provide generic solutions, even if every case differs from each other.

2. Turnover and Accessibility

Since the staff comes and goes in the national insurance adviser firm, there’s a high probability that the adviser you’re currently working with will not be the same as your adviser for the following years.

Which One Should You Hire?

At the end of the day, the decision is based on your needs and preferences. At the same time, you should consider other factors, such as accessibility, budget, and relationship. Since insurance is a form of investment, you should be able to communicate with your insurance adviser whenever you need to.