WHAT IS AN INSURANCE BROKER
An insurance broker arranges insurance contracts from the client's side.
An insurance broker (hoken nakadachinin) is registered under Japan's Insurance Business Act and, appointed by the client, arranges the conclusion of insurance contracts with insurers. The role was introduced in Japan by the amended Insurance Business Act that took effect in 1996. Registered brokers are few compared with non-life insurance agencies.
KEY FEATURES
What Defines an Insurance Broker
01
On the client's side
Appointed by the client, the broker negotiates terms with insurers on the client's behalf. This differs from a non-life insurance agency, which sells on behalf of insurers.
02
Independent of any insurer
Not belonging to any insurer, the broker can compare several insurers' terms and design insurance from the client's side.
03
A legal duty of good faith
The law requires the broker to act in good faith for the client (Article 299 of the Insurance Business Act). We explain without being swayed by any interest in an insurer.
04
Qualification and registration
The work is done by people who have passed the prescribed qualification exam, and the broker is registered with the Local Finance Bureau after lodging a deposit.
AGENCY AND BROKER
How a Broker Differs from an Agency
Non-life insurance agency
Insurance broker
Appointed by
Insurer
Client
Role
Sells insurance on behalf of the insurer
Arranges the insurance contract on behalf of the client (duty of good faith, Article 299 of the Insurance Business Act)
Insurers dealt with
The insurers that appointed it
Not tied to any insurer
OUR APPROACH
Not just choosing a product, but designing the terms you need.
A broker sets out the client's risks and the cover needed, then designs and negotiates contract terms with insurers' underwriting criteria in mind.
Testing the terms offered
We test coverage, limits, exclusions and premium, and renegotiate with the insurer anything that does not fit the cover needed.
Alternatives for hard-to-place risks
Where limits fall short or the risk is unusual, we consider approaching additional insurers, coinsurance, and the overseas reinsurance market.
Existing contracts judged by the same standard
If a review shows your current terms are appropriate, we recommend keeping them. We do not assume a change of insurer.
We design insurance from the cover you need, not from what is on the shelf.
SCOPE AND FEES
What a Broker Does Not Do, and Fees
What a broker does not do
A broker does not conclude contracts on the insurer's behalf, collect premiums, or decide whether claims are paid. The client makes the final decision on the contract, and the insurer makes the underwriting decision.
Fees
Our fees for arranging insurance are paid by the insurers.
FAQ
Frequently Asked Questions
Does using a broker cost extra?
We do not charge clients a separate brokerage fee. Our fee for arranging the contract is paid by the insurer. The premium depends on the cover and each insurer's underwriting terms.
Is the broker involved when a loss occurs?
Yes. We help notify the insurer and prepare documents. Whether a claim is paid, however, is decided by the insurer based on the policy wording and its investigation.
Can we use you if we already work with an agency?
Yes. We can start with a review of your current insurance, and you can also appoint us for specific lines or contracts.