What’s the difference between an ‘insurance broker’ and a ‘risk manager’?

Armed with a strategic risk management (SRM) framework, insurers can proactively navigate these rough waters as the tides change. A brokerage, in the context of insurance, refers a company that connects insurers and potential clients to help individuals and businesses find insurance policies that represent a good value for their specific needs. Insurance brokers are often the people who represent the brokerage in this work. Our team delivers customized risk management and insurance solutions to the aviation Risk Management in Brokerage and aerospace industry. Our broad and seamless coverage, claims advocacy and strategic approach to the treatment of aviation risks coupled with our highly experienced team can help you navigate the challenging landscape of aviation insurance. Yvette Connor began her career in brokerage with USI Insurance Services L.L.C. and spent some time as an underwriter at Superior National Insurance Co. before becoming the director of insurance and risk financing at Sutter Health in Sacramento, California.

What is insurance brokerage and risk management

We’ll help determine if your company is right for a captive solution, how it would need to be structured, and recommendations for ongoing management. Mr. Marsh learned about the risk management position at Air Methods while serving on the board of the Rocky Mountain Chapter of the Risk & Insurance Management Society Inc. After announcing at a board meeting that he was leaving Willis to pursue his passion, a fellow board member told him he was friends with the CEO of Air Methods and facilitated an introduction. You know what services they’re supposed to be providing, you know timeframes, you know deliverables,” she said.

Insurance: Transforming risk and compliance

Utilizing an insurance broker can have advantages beyond saving time, because a broker can help you decide how much coverage you need, and help you avoid the pitfalls of buying inadequate coverage. According to a study by the United States Government Accountability Office, insurance brokers and agents must obtain a state license and comply with insurance regulations. For instance, California’s licensing requirements include at least 20 hours of pre-licensing study and 12 hours of California insurance code and ethics studies, plus continuing education after obtaining a license. A broker is an intermediary between an insurance buyer and an insurance company. A broker works on commission and can be an individual working independently, or a brokerage firm that employs numerous brokers.

We are Gallagher, a global leader in insurance, risk management and consulting services. Much more than simply an insurance broker, we are an international group of partners that provide cost-effective, client-centric, and expertise-driven risk management solutions. Our leadership team fosters a dynamic, entrepreneurial culture that has made us an innovator in creating new products and services for our clients. The scope of these demands is posing a creative challenge for chief risk officers and chief compliance officers (CROs and CCOs). In response, some insurance companies are beginning to restructure these functions extensively so they can fulfill their new responsibilities in a more effective way.

Meeting Modern Customer Expectations

Risk management for insurance companies enables insurance companies to succeed among this uncertainty by anticipating and addressing a wide variety of change before risks materialize. Insurance companies can “self-insure,” or purchase coverage from a reinsurer, but this doesn’t ensure all of the company’s risk is accounted for. One of the biggest values an insurance company provides is customer service for those who need to submit a claim. If customers consistently have poor customer service experiences, they’re likely to share their stories on social media, tarnishing the company’s reputation and leading the company to fall behind their competition. However, there are additional significant distinctions between insurance agents and insurance brokers in terms of their job responsibilities and the parties they represent. The terms ‘broker’ and ‘agent’ are often used interchangeably in the insurance market.

What is insurance brokerage and risk management

Half have a single accountable owner for it—the chief risk officer, the head of sustainability, or the CFO. For other insurers, ESG (environmental, social, and governance) and climate-risk topics are coordinated across functions, but with no one accountable owner. Pat discusses Gallagher’s rising stock price and company growth, insurance industry rates, the World’s Most Ethical Companies recognition and the 2023 outlook. As you ponder over which of these best fits your description, I’m sure that the term “risk manager” was not the first thing that came to mind. I find this quite surprising, especially considering the fact that risk management is the foundation of insurance. “I had been longing to get back into aviation, and this opportunity came along, in which I could couple my experience with insurance and risk management and my passion for aviation,” he said.

Risk Management Points Every Broker Should Know

But if you have complex insurance needs, a broker can help you better navigate the insurance market. For example, IntelliQuote works in the life insurance line, while Crump brokers disability insurance, life insurance, and long-term care insurance. Insurance brokers are professionals who serve as intermediaries between consumers and insurance companies. To determine how well your organization’s risk management program meets regulatory and consumer demands, including ORSA requirements, we encourage you to take the Risk Maturity Model.

While they can present insurance policies for an insurer, they don’t have the legal right to act on the company’s behalf. For example, a broker would not have the authority to issue a policy or determine a policy’s premiums. Many global insurers are now moving to a capital-light, fee-based business model (such as asset management) in structurally advantaged value pools in their domestic markets.


Modern insurance was created when risk managers for banks decided that a financial risk management tool was required to protect the loans they made to ship owners/builders. The banks needed a way to shift the risk of loans not being repaid in the event the ship sank or was pirated. The banks decided they could not cause enough cannons to be added (cannons were the original risk management tool against pirates), nor could the ships of the day be adequately engineered to overcome Mother Nature. The insurance industry is undergoing a transformative shift, shaped by emerging technologies and evolving customer expectations. As this evolution continues, modernization of the brokerage model becomes a crucial differentiator for middle market insurance agencies and their field marketing organization (FMO) partnerships. The forward-thinking leaders in the industry are already embracing change, and it’s time for other agencies to follow suit.

What is insurance brokerage and risk management

People get to drive, they get to bid on construction jobs, they get to protect their families. Bringing both economies of scale and the stability of over 90 years of excellence to your business. In every community where we do business, more than 48,000 Gallagher colleagues create and follow a culture based on strong values, collaboration and professional excellence. The growth of digital health and telemedicine brings about unique liability concerns and risks that go beyond traditional care.

Pros and Cons of Insurance Brokers

Recommended by the NAIC and Institute of Internal Auditors, this free, 30-minute assessment benchmarks the strength of your risk management program and enables you to identify areas that need the most improvement. Risk Management Division is creating a pool of pre-qualified firms to support the City’s risk management needs. Our team brings https://www.xcritical.com/ together expertise in all aspects of management liability to provide a holistic approach to identifying, understanding and managing these exposures to risk. Kevin Shane recently made the transition from practice leader in engineering, construction and real estate at Marsh in Denver to senior risk manager at engineering firm CH2M Hill Cos.

  • Modern insurance was created when risk managers for banks decided that a financial risk management tool was required to protect the loans they made to ship owners/builders.
  • Insurance companies can “self-insure,” or purchase coverage from a reinsurer, but this doesn’t ensure all of the company’s risk is accounted for.
  • Our team brings together expertise in all aspects of management liability to provide a holistic approach to identifying, understanding and managing these exposures to risk.
  • From negotiations to closing deals to operations, our team of experts can help you protect equity and intellectual capital.
  • Gallagher strongly encourages you to review any separate terms of use and privacy policies governing use of these third party websites and resources.
  • Our unique culture guides how we do business and is described in a series of 25 tenets called The Gallagher Way.

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