Our Services Are Free, So How Do We Make Money?
We are a China-licensed insurance broker. And as such we do not charge our clients anything for our services. This can make some clients suspicious that there might be some hidden charges or costs – there isn’t!
We help clients save money and ensure they’re properly protected by giving them options to choose from and great advice, so why don’t we charge for this service? The answer is simple, we get paid by the insurance companies we partner with. Despite being paid by the insurance companies, we do not work for them, in fact we work for our clients. As an insurance broker rather than an insurance agent, legally we work for our clients’ interests and not for insurance companies.’
Why do Insurance Companies Pay Insurance Brokers?
If insurance companies didn’t use insurance brokers to help them distribute their insurance plans, they would need to hire hundreds of sales staff in many cities throughout China and other regions and figure out how to market to and find clients. This is expensive and many insurers see this as a distraction from the core work they do on designing insurance products, managing risk and providing good services to their clients. Essentially, they outsource their plan distribution.
Take Bupa as an example. In China if you call Bupa and ask to buy one of their plans they will redirect you to one of their trusted partners, such as us, to help advise on the plans available.
Can I Get a Lower Price Going Direct to The Insurance Company?
The price offered to our clients is exactly the same as the insurance companies’ direct prices.
This set up actually benefits you. Imagine a world where insurance companies only sell directly. That’d be like going to a bar in a foreign unfamiliar city and only selling beer. You ask the bartender to recommend a wine, and of course he says “Actually I strongly recommend this beer or one of the other beers on tap.” But what if a glass of wine is more suitable to your taste that evening? Well then you’ll have to try the next bar and the next bar until you find one which serves what you want. That’s an incredible waste of time and there’s a chance that out of desperation you end up buying a drink you don’t want. That’s a long winded way of saying insurance brokers can show you and give advice on all options in the market. Don’t waste time shopping around, talk to the experts who can shop around for you.
How Much do We Get Paid?
The amount we get paid by insurance companies varies based on their internal policies, if the client is a new client or an existing client and how many clients we have with them in total. In general it is a percentage of the insurance premium we have introduced to them, usually between 5% and 20% for new clients.
This can have a distorting effect whereby some agents and brokers might only promote insurance companies who offer them the most commissions & incentives. This is absolutely not the case for us.
We compare plans from all reputable insurance companies on the market and help the client make an informed decision. It’s actually in our interests to help our clients find the right plans for them, as they will stay with us for many years and often introduce our services to their friends and network, so this is a win-win for the client and for us. In fact we don’t consult on or offer insurance plans from the insurance company which offers the highest level of incentives and commissions to us, simply because they are not reputable and reliable. I personally couldn’t sleep at night knowing we have a client whose family’s health relies upon an unreliable insurance plan.
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