In Thailand there is often confusion about how the services differ between insurance agents and brokers.
In this article I’ll explain how their services actually provide different value, which in a way is perfect because customers rarely value the same thing when making a purchasing decision.
Firstly, it is good to know that both agent and broker are regulated by the Office of Insurance Commission (OIC) of Thailand.
Their website is in Thai, but don’t worry I’ve translated and summarized the information for you below, along with some other information I think you’ll find interesting.
Let’s get started.
What is the purpose of insurance agents and brokers?
The purpose for both agent and broker is to promote and facilitate the buying of different types of insurance policies to match the customer’s needs.
Agents and brokers act as a link, or intermediary, between the customer and the insurance company.
Although both agent and broker have similar duties, they are required to be different people. This means that in the same insurance category, a person cannot be an agent and a broker, or vice versa.
Similarities of an agent and a broker
Since both are the link between insurance company and customer, customers usually see them as fulfilling the same role.
- Both are required to be registered with the Office of Insurance Commission (OIC)
- To sell insurance, both need to pass an exam set by the OIC.
- Both are paid commission on sales by the issuing insurance company.
Ideally, both will have the goal of finding you the best health insurance in Thailand.
What are the differences between an agent and broker?
Insurance agents are employed by insurance companies and offer products and services to customers on the company’s behalf.
So when you meet an agent they will be employed, trained, and paid by the specific insurance company you want to work with.
A broker, on the other hand, is an independent intermediary who offers the customer multiple products from various insurance companies.
As long as brokers are approved with the OIC in Thailand, they can be either a local Thai business, an expat business registered in Thailand, or an international company.
Agent or broker, who is best for you?
Firstly, as an agent myself I feel that both agent and broker provide an essential service to customers. Both have the duty to assist customers with the application and renewal of contracts.
Just keep in mind that regarding professionalism and the individual level of service you may expect can vary greatly depending on the company you work with, or the individual agent or broker.
Which is best will differ from person to person. So, to determine which is best for you, I’d like to focus on the biggest difference in value that each provide.
Value that a broker provides
- By being independent, brokers can offer a wider variety of products and services. If you aren’t set on a specific insurance company brokers can put forward a quote from multiple companies, which will comparatively also include a cheaper policy.
- Broker websites are easy to find online and usually offer a way to compare policies. Websites and correspondence through email is easy for expats because they are usually in English.
- If you need to make a claim you need to work through the insurance company you chose, which means you need to contact their call centre. However, some brokers will assist you in completing the required documents.
- If you prefer to work with expats instead of directly with a Thai company, there are expat brokers you can contact who will contact the Thai insurance companies on your behalf.
Value that an agent provides
- While agents only represent one insurance company, they also offer a variety of life and non-life insurance. Agents often have customers who later buy more products from them. While not always the case, customers can sometimes benefit from having multiple products with a single insurance company.
- Agents receive product training on the policies they sell. They are qualified to answer questions you may have regarding the terms or conditions of a policy.
- Agents receive risk management training. They are trained to discuss with the customer their financial and health situation, and offer advice on policy benefits that may suit them best.
- If you need to make a claim, instead of contacting the insurance company’s call centre you can contact your agent directly. The agent will provide the necessary documents and help you complete them. They also speak to hospitals on your behalf.
Buying insurance directly from an insurance company vs indirectly
Customers looking to buy insurance in Thailand will find out that there is more than one way to arrange it. But be aware, each have their own pros and cons.
If you are someone who wants to buy directly from an insurance company, you can choose to either find and work through an agent, or you can just email the company directly.
Just be aware that if you email an insurance company directly, it is likely that you’ll be contacted back by a customer care representative, and not an agent.
It may be quick to just email the insurance company directly for a quote, but you will lose out on a lot of value provided by an agent which was mentioned above.
If you’d rather like to go the indirect route and let a broker find insurance on your behalf, then that’s also an option.
Many expats who can’t speak Thai prefer this route because finding an English speaker when dealing directly with a company isn’t always a given.
The biggest difference between buying health insurance directly from a company vs indirectly has to do with the after-sales service.
Unlike an agent, if you choose to buy insurance through customer care or a broker, then you will need to contact the insurance company’s customer call centre for support.
While some brokers will assist you with a claims form, you’ll still need to contact the insurer and speak with customer care.
In comparison, buying insurance through an agent will allow you to contact the agent for queries and claims instead of a call centre.
These days in Thailand call centres are in a much better position to help expats, so this really comes down to your personal preference.
But for many, I’d recommend just finding an English speaking agent who can manage their insurance for them. Thai people use agents for this reason, and expats get the same benefits.
How to find and agent or broker
While some people may have a friend who can refer an agent, broker, or insurance company to you, the rest can turn to the internet.
Just be mindful of how you search because the internet is full of people trying to get your attention. Many companies will advertise special prices which generally are not special in any way.
I’d recommend finding either an agent or broker and speaking to them about what you are looking for in an insurance policy.
How to find an agent
To find an agent from a specific company, you just need to search online using the word “agent” plus the insurance company name.
Otherwise, while driving around you might see a branch from a health insurance company. These offices are small agencies that work directly for the parent company.
Remember that if you contact an insurance company directly online and complete an online quote, you may be contacted by a customer care representative and not an agent.
While not a requirement, it could be beneficial to you to find an agent who lives in your city. Agents usually complete the contract in-person together with the customer.
How to find a broker
Brokers can also be found online, especially if you use the search term “compare”. You can identify them easily because they will be promoting more than one insurance company.
Brokers will offer to speak to insurance companies on your behalf. Usually, you won’t meet a broker in person so it doesn’t really matter where they are located.
Certain brokers will be more hands-on, which is great, so when possible check reviews for that brokerage before you sign a contract.
Other websites you might find
Be mindful that if you search online for “best” insurance in Thailand, you might land on a personal blog which is most of the time someone recommending a broker or insurance company, and is someone who makes money doing so.
These are called affiliate websites. While they can definitely provide some helpful information about policies and companies, be careful who they rank as the best.
Affiliate websites usually try to remain unbiased, but it’s their business to promote and prioritize brokers and insurance companies with the highest commission rates.
Are agents and brokers Financial Advisors?
I’d like to add a quick note about Financial Advisors in Thailand because you may see some agents or brokers with a Financial Advisor title.
As if things weren’t already confusing 😊
Financial Advisors are people who have passed an additional examination that qualifies them to give financial advice on certain financial products.
To be clear, both an agent and a broker can have the title of Financial Advisor, but it isn’t a requirement for their position.
Certain companies in Thailand, such as the AIA Group, offer insurance products which are linked to financial investments.
These products act partly as insurance, and partly as an investment portfolio. If you are interested in learning more about Unit-Linked products, you can send me a message.
To summarize, agents are the most qualified to give advice on insurance products, while brokers are best at comparing product pricing from multiple companies. However, only Financial Advisors are qualified to give advice on financially related insurance products.
In conclusion
Both agent and broker fulfil an important role in Thailand by promoting and facilitating the purchase of insurance policies.
When it comes down to who you should choose to purchase insurance from, it will strongly depend on not only the policy itself, but also which services you value most.
You can buy insurance directly from an insurance company through an agent or customer care, or you can buy indirectly through a broker. Both have their pros and cons.
Short summary of the benefits, Agent vs Broker
Brokers
People who choose to work with brokers are usually people who prefer the convenience to compare and purchase insurance policies online.
They are also people who purchase insurance ad hoc, or as needed, and don’t mind working with multiple brokers or companies as long as the policy is comparatively good value for money.
- Brokers are for people who value ease of purchase and affordability the most.
Agents
People who choose agents value not only the continued administrative help, but also the expertise that the agent has in explaining the policy that they are considering purchasing.
People who enjoy buying multiple products from the same insurance company, whether for themselves or their family, benefit from working with an agent.
- Agents are for people who value contract expertise and a closer/longer working relationship.
That’s it. I hope this article has brought you a step closer to deciding whether to work through an agent or broker.
If you have any questions, you can send me a message. I’d be glad to help.
