In insurance, a request for proposals (RFP) is essentially a formal procedure initiated by an entity that requires insurance coverage for its operations. Usually, an insurance broker or agency is an expert in the market who has established long-term relationships with various insurance providers of different types. These providers are normally referred to as underwriters. The providers send their proposals on behalf of their underwriters to an insurance broker for evaluation. Based on the analysis, the underwriter presents the best quote to the insurance company for acceptance.
Underwriters and brokers have a close relationship. It is usually a contractual relationship although it can also be a mutual one based on certain rules laid down by governing bodies such as The Association of Insurance Brokers and Underwriters. Brokers assist underwriters prepare their quotations by providing them detailed information about the terms and conditions that apply. This helps the underwriter to negotiate better premiums rates for clients. It also ensures that the underwriter receives the maximum premium for his or her services.
Another area where Gessel & Associates brokers play an important role is in providing inducement to insurers to offer coverage to a client. For instance, some insurers require customers to undergo health screening measures before they are eligible for such coverage. A health insurance broker can use various techniques to help an individual attract a lucrative offer from an insurer. One such technique is to use wellness programs as an inducement to insurers.
Health insurance brokers can help the provider prepare a customized not-for-profit bond to raise funds from a potential investor. Brokers often work together with investment banking partners to draft a proposal that investors can readily fund and use. This is in addition to a brokerage offering the individual a discount on the premiums. Read more about insurance at http://www.ehow.com/how_5017067_set-up-insurance-company.html.
Finally, some insurance brokers provide risk management services to the insurer to review various aspects of a potential risk, including the customer's entire life and risk management portfolio. When evaluating risk, these professionals analyze the investment portfolio of the customer in addition to the individual's health history. In many cases, these professionals can also evaluate the value of assets that could be lost should the customer become ill or retire unexpectedly.
To determine whether an individual needs to use the services of insurance agency colombus OH, it is necessary to carefully assess the individual's unique needs. Different people have different needs. For example, some individuals may be more comfortable working independently than hiring an insurance broker. While it is possible to find affordable policies without a broker, those looking for savings should consider using a service instead.