INSURANCE brokers play an important role in an economy. In our market, about fifty per cent of gross written premium is transacted through brokers. Notwithstanding this prominent contribution, a number of clients still mull over whether to deal with insurance companies directly or use brokers. More often than not, customers have asked me to illuminate the advantages, if any, of using a broker over dealing directly with the insurer. The paramount question then is ‘which is better between insuring directly to an insurer or through a broker?’ The Insurance Act of 1997 which governs insurance in Zambia defines a broker as a person who on behalf of the insured person or a person who intends to take on an insurance policy, arranges insurance policies. According to the list published by the Pensions and Insurance Authority (PIA) on licenced players for 2014, there are over thirty broking firms in Zambia. Brokers are categorised as either cash or credit brokers. The former transacts business on a cash basis meaning that once a client pays to the broker then the broker is obliged to remit the premiums to an insurance company instantaneously. On the other hand a credit broker is allowed a credit period of about thirty days before they can remit the premiums to the insurer although paying to the broker is as good as paying to the insurer. Failure to remit premiums has severe consequences including termination or non renewal of licence by the regulator and some brokers have tasted this wrath of the law especially where they issue cover notes on behalf of insurers. An insurance broker has a fiduciary duty to act in the best interests of their client and provide sound practical advice which is independent of any insurance company’s influence. This is perhaps one of the key roles of brokers. They (brokers) are able to deal with a number of insurers and try to get the best deal for their clients. By dealing with many insurers a professional broker has access to different types of insurance products with different policy wordings, read and understand them on behalf of the clients who usually don’t have the time to read through these ‘bulky’ policy documents. Brokers act for their clients and help them to decide what risks to insure; what types of cover and find the best price. They are able to negotiate best terms for their clients although not necessarily the cheap ones. As with everything in life the cheapest is not necessarily the best.  When arranging insurance it is easy to look for the cheapest, without considering policy wordings, additional benefits, insurance companies’ financial stability and their claims paying history. Often a wider policy wording does not cost much extra and it is from such sound advice that should be the basis of choosing a particular broker that will add value to the risk transfer mechanism and not merely act as a biker of documents to and fro the insurance company. Brokers can also consider if there are other ways that the risk can be transferred such as self insurance and other non-traditional insurance products. The broker needs technical competence on giving professional advice to the client and this is what gives an urge to competitors in this subsector. Where the client acts on broker’s advice and suffer financial loss resulting from the same then the client can sue the broker for professional negligence. It is for this reason that brokers are required to have Professional Indemnity insurance to cover such liabilities. Claims handling is another key role performed by brokers. When an insured loss occurs the broker notifies the insurer on behalf of the client and helps the client to get all the necessary documents such as repair or replacement quotations, completing of claim forms etc. The client needs the comfort that the broker will facilitate the claim processing while they (client) continue with other normal duties. In cases of disputes or delayed settlements brokers speak for their clients and this is where the broker’s ability to have their client’s claims settled promptly is tested. Unsatisfied clients can freely decide to either change brokers or insurers depending on the service they receive. Broking is a ‘hands’ on role requiring a combination of technical knowledge, business, communication, people and practical skills. These skills can be acquired from various tertiary institutions while the valuable practical skills require experience as nothing beats experience. All brokers in Zambia are required to be members of the Insurance Brokers Association (IBAZ). This association promotes professionalism and has a code of conduct required to be practised by members. Therefore the conundrum of whether or not to use a broker is resolved after carefully scrutinising the services offered and a track record of the reliability and credibility of a particular a broker. Although insurers are responsible to pay brokers commission they are happy doing business via brokers on an understanding that the broker will present the refined work to the them and it is easy to talk the insurance language. Comments: webster@picz.co.zm or webster_tj@hotmail.com or face book search for Insuarance Talk-Zambia page or 0977857055 (The author is a Chartered Insurer with ten years industry experience)