Insurance Advisers vs. Direct Providers: NZ Guide
Choosing insurance in New Zealand?
Here's what you need to know:
Insurance advisers are middlemen who help find policies
Direct providers are companies you contact yourself
NZ insurance covers travel, health, home, car, income protection, and life
Key differences:
Insurance advisers in NZ are typically free, paid by commissions from insurers.
Bottom line: Choose based on your needs, budget, and desired level of support.
Insurance Advisers
Insurance advisers in New Zealand are your go-between with insurance companies. They're not tied to one insurer, so you get more options.
What do they do?
Check what insurance you need
Find policies that fit you
Explain tricky terms simply
Help with claims
It usually takes 2-3 meetings. They'll ask about your health, money, and goals to give the right advice.
Why use an adviser?
Saves time: They do the comparing for you
Know their stuff: They understand policies inside out
Keep helping: Many check in as your life changes
But heads up: some work on commission. This might sway their advice.
"An insurance adviser is a go-between who deals with insurers to arrange your insurance." - Financial Markets Authority
Types of advisers:
Independent Insurance Advisers
Company-specific advisers (like Chubb)
Each has its good and bad points. Chubb advisers, for example, don't get commission. This could mean less biased advice.
What to expect:
They'll ask about your:
Income
Job
Money goals
Health history
Be honest about health issues. It helps them find the right cover and avoid surprises.
Choosing an adviser:
Check their qualifications
Ask about their experience
Read what clients say
Know how they get paid
Remember, NZ's Financial Markets Authority keeps an eye on advisers. They have to follow strict rules to protect you.
Next, we'll look at direct insurance providers. This will help you weigh up both options.
2. Direct Insurance Providers
Want to skip the middleman? Direct insurance providers let you buy policies straight from the source. It's often quick and easy, but there are pros and cons.
The Good:
Fast: Many NZ insurers offer online quotes and purchases
Control: You pick which companies to check out
Simple: If you have experience you may not want or need to shop around
The Not-So-Good:
Limited view: You only see one company's products at a time
Less guidance: You might miss out on personalized advice
Jargon jungle: Insurance terms can be tricky to navigate solo
"Buying direct from a life insurance company may mean missing out on the personalized experience you'd get with a broker." - Financial Markets Authority
Going Direct? Remember:
Get at least three quotes
Check what's covered (and what's not)
Ask about unclear terms
Review your cover after big life changes
Keep in mind: Some insurers only sell through brokers. And be careful with online forms - missing details could cause headaches if you need to claim later.
Compare Insurance Options and Save
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Good and Bad Points
Let's compare insurance advisers and direct providers in New Zealand:
Insurance Advisers
Pros:
Expert guidance
Wide product range
Time-saving
Claims support
Cons:
Potential fees
Less direct control
Direct Providers
Pros:
Possible savings
Direct insurer contact
More control
Cons:
Limited comparison
Complex terms
No personalised advice
"Buying direct might mean missing out on a personalised experience." - Financial Markets Authority
Which option fits YOU best? It depends on your needs, budget, and how much help you want.
Wrap-up
Choosing between insurance advisers and direct providers in New Zealand? It's all about what you need, what you can afford, and how much help you want.
Insurance Advisers: Your Personal Insurance Guide
These folks offer:
Expert advice just for you
Lots of options from different providers
Help when you need to make a claim
Your best bet is to take the quiz at Insurance Genius to get connected with an independent expert who will find you the best value for money cover.You don’t have to do any of the heavy lifting and you’ll have the confidence that comes with having an expert in your corner.