In the face of the pandemic, which is far from over, and just over 11.9 million unemployed, a certain category has gained ground even in a tough job market. Who is this professional? Answer: An insurance broker.
The new perception of risk and a sense of infinity – the signs left behind by Covid-19 – has fueled demand for insurance on everything: life, cars, homes and even cell phones.
As intermediaries between the client and the insurance company, brokers or advisors take advantage of the good stage of the sector to take advantage of their career and expect more people interested in the products.
Insurance marketing has three agents: the insurer, the customer, and the broker.
Nothing prevents an insurance company from selling insurance online directly through its own platform or broker, but the broker’s number has been increasingly important to successfully closing the policy.
In Brazil, there are at least 120,000 registered brokers registered with Susep (the body responsible for regulating the insurance sector in the country). With the entity certification in hand, these professionals operate within the rules of the system and are subject to constant inspection by the entity.
Under the pandemic, the number of registered professionals continues to grow. There was an 11.6% increase in accredited broker registrations between 2020 and 2021. In the first five months of this year, the increase was nearly 5% compared to the same period last year.
|year||Total number of brokers registered with Susep|
|2022 (until 27/05)||1191919|
“Only insurance brokers duly registered with Susep can carry out the activity, regardless of affiliation with a self-regulator,” the entity says.
To be an insurance broker, a professional needs to obtain a certificate, officially called the Insurance Broker Qualification Examination, which is applied by the Insurance Business School (ENS). The test is online and lasts four days and can be taken twice a year.
“Only professionals accredited with a course or qualification exam conducted by ENS or another educational institution licensed by Susep will be able to register as an insurance broker,” he says.
There are five categories of exams, two of which are better known: the life and pension specialty, informally called “Susepinha”; And specializing in insurance for all lines, also known as “Susep” or “Susepona”.
“Who takes ‘Susepinha’ does not for example provide car or home insurance. But they are choices for every professional. ‘Susepona’ is ‘more challenging because it enables a person to handle insurance of any kind,” says Fernanda Camões, insurance broker at Valinhos ( SP).
The main goal of certified professionals is to attract clients, which requires a business profile. “In addition to being commercially available, you must have the technical knowledge and constantly update. The market moves quickly, and if you don’t know the product, you may be left behind because the customer may need exactly the new coverage you didn’t know about,” says Camões.
The trade route, which is required in the area, should be used strategically so as not to hamper the search specifically for customers. “Many professionals have become so-called ‘marketers.’ They want to sell, sell and sell, and they want to sell, sell and sell, and they can’t explain to a potential client why insurance is so important,” says Loreval Neto, director of a group of brokers in São Paulo.
The temptation that attracts more and more professionals to the insurance field is the reward. Values vary according to the offer of customers – those who expect insurance policyholders from among those with high incomes, of course, earn more.
According to the specialists consulted, the monthly wage ranges from 3 thousand R$ to 100 thousand R$ per month, but it all depends on the closing of contracts, which transfers a percentage to the broker.
Intermediaries working exclusively with the insurance company have, in addition to the share of the policy, quarterly, semi-annual or annual performance bonuses, mechanisms for raising the level of salary.
There is also a kind of remuneration for the life of the policy: while the client pays for the insurance, the broker receives a monthly percentage of the value of the premium of the insured.
“Being able to raise wages attracts a lot of attention. It can change lives. You build your client portfolio and you also build your own assets,” says Fernando Ulbrich, an insurance broker in Sao Paulo.
Lorena Vlan, is a broker and owner of ID Financial, a digital platform that helps brokers deal with bureaucracy in the region. She says insurance companies’ commissions are getting more and more attractive.
“I’ve seen commissions as high as 50%. These are high values because someone is going to face pressure and needs emotional intelligence and has to know how to handle rejection. That promise to pay has to be high because it’s a complex sale,” says Vlan.
According to Lourival Neto, multinational insurance companies are very careful to ensure that their brokers are exclusive and have professional “baggage” in the market.
The profile of the person who will be presented, as already mentioned, significantly affects the earnings of the broker, who needs to choose: to specialize in high incomes, most likely, to serve a smaller number of clients; Or bet on retail, where their customer volume is much higher.
Some professionals, such as the broker Fernanda Camões, work the “middle way”, with a portfolio made up of different profiles. “I have a client who pays 100,000 R$ in installments at 500 R$ annually. It varies a lot,” he says.
Technology’s Impact: Can the Realtor Die?
Although the profession is on the rise, it is already facing challenges posed by the online insurance contract. The question that remains is: in this remote model, is the median number still relevant?
For Augusto Coelho Cardoso, Director of Susep, the pandemic has revolutionized the insurance sector and encouraged remote contracting methods, including online interviews, electronic policies, contracting via apps and websites, as well as price simulation platforms.
“I think the trend, going forward, is to standardize this format because, in addition to making it easier to work, it allows more consumers to access insurance,” Cardoso says.
The impact of technology depends on the type of client, says Pedro Dalla Stella, co-founder of SDS Insurance, a São Paulo-based insurance broker.
“For a professional who works with retail, the impact will be a little bit greater because it will be easier and faster to buy insurance and democratize access. But who serves the audience more”Special’, I think the profession will still be necessary and technology will help. Dealing with much larger assets, succession planning, and a more advisory service, with the Internet, can ease bureaucracy and allow us to reach more clients,” he assesses.
Vlan, of ID Financial, says that at some point, the technology may replace part of the broker’s work, with direct marketing done by the insurance company to the customer.
“But it is practical. Today no one gets up and goes after insurance. People don’t buy directly; they receive product offerings and then think about the potential need. Our culture is still very weak. Thus, the role of the advisor is still important,” says the broker.
“Product customization and practical application can lead to the necessary consultant number. It still takes a long time to secure employment for the client because there is so much information. It is naive to think that technology will not affect anything, but I still see it as something out of our reality. I am not afraid That swallows me up in the medium term,” he adds.
Another factor that requires the median figure is the lack of knowledge of the population regarding the products. Today, for example, only 30% of the country’s car fleet is protected; In the residential area, this share drops significantly to 15%.
“The insurance market has a lot of potential, but not everyone understands the importance of hiring. Customers who sign a contract online can pass on important information in pricing coverage. Or even rent coverage thinking it is one thing and another, or even not reading ‘Terms and Conditions’ It will show and explain the exceptions. Gustavo Bentes, member of Fenacor (National Federation of Brokers), says online contracting has its challenges as well.
Also, according to Bentis, in the near future, online contracting may lead to a further legalization of the sector, due to the fact that the customer ends up buying a “cat in a poke”.
This is the same concern from Desireé Franco, partner at Goulart Penteado Advogados. “There are many complaints in court about policy coverage: People think they have ABC coverage, and in fact, they only have AB,” he says.
In many of these cases, the client did not read the policy. When he realizes this, he files a lawsuit for feeling wronged and asks for compensation. This misinformation increases the number of lawsuits against the insurance sector,” Franco continues.
With the development of technology and artificial intelligence, any activity that does not require human contact can be replaced.
We can’t prevent AI from getting to work, but it needs a lot of data and progress to arrive at an accurate life insurance answer. It is essential to understand the different coverages and nuances, apart from humanized work,” reviews broker Lorena Vlan.
Rebecca Toyama, an expert in career strategy, says the insurance broker is going through a series of changes, in the face of the pandemic and globalization.
“The insurance market has a more detailed sales, which is based on human understanding and evaluation of the characteristics of the customer. In this position, the insurance broker has space. But in practice, everything that can be sold without human contact tends to be replaced. Therefore, no one should settle professional,” he explains.
Another factor entering this equation is the access of Open Insurance, which, following the innovation of Open Banking, is preparing its own ecosystem for sharing and popularizing insurance and pension data.
With the consent of the customer, it will be possible to transfer information about products, transactions and situations that customers may have with insurance companies, with the aim of searching for better and cheaper services among market players.
With so much technology at the consumer’s convenience, it will be easier to compare, hire and access the insurance market, and the broker has to be aware of the changes.
The open insurance project is still in the making in Brazil, and the process of getting it to work on a large scale should take a few years.
“Given the current insurance culture in Brazil, which requires the supply to reach the customer, the broker has a personal service role, but will have to adapt to changes. The profession must become more digital,” notes Rogerio Melfi, member of ABFintechs.
Ricardo Bandor, Accenture’s senior director of strategy and business who specializes in open finance, explains that Open Insurance business groups discuss ways not to separate the profession from market dynamics, as they recognize that the professional extends knowledge about insurance to the population.
“But there is no way to claim that technology and markets will not interrupt this mediation in future negotiations,” says Pandor.
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