You have to pay for the services of an insurance broker:
Insurance brokers are normally remunerated by the insurance companies, however some brokers will charge a fee for arranging an insurance policy.
Insurance brokers don't report to anyone and can therefore do what they want:
Brokers are made fully accountable for what they do by the FAIS Act and the FAIS Ombud makes sure that they are held to this.
You have no protection against your insurance broker messing up:
While the FAIS Act does offer protection, brokers are also required to be insured against making professional errors and you as a client are within right to make this enquiry of an insurance broker.
When commissions don't have to be paid to brokers, the premiums will be lower:
Since direct insurers spend a lot of money on expensive advertising campaigns, it eliminates any possible savings that could have been made.
You can get a better deal when organising your own insurance:
Since insurance is a legal contract, it is always better to have an expert helping you - a mistake could cost you a lot more than a broker will.
