What is an insurance broker's primary function during the policy renewal period?

The primary function of an insurance broker during the policy renewal period is to assist clients in analyzing their coverage needs. This process is essential because as clients’ circumstances change—such as lifestyle, financial status, or assets—their insurance needs may also evolve. Brokers play a pivotal role in reviewing existing policies, understanding changes in risk exposure, and recommending appropriate adjustments to ensure clients have adequate and suitable coverage for the upcoming term.

By focusing on analyzing coverage needs, brokers help clients make informed decisions, ensuring they are not over or under-insured. This personalized approach fosters a strong relationship between the broker and client, ultimately leading to enhanced client satisfaction and retention.

In contrast, while creating new insurance policies, selling multiple products, and handling claims disputes are important functions of an insurance broker, these activities are not the primary focus during the renewal process. During renewal, the emphasis should be on reviewing and updating the existing policy to best fit the client’s current needs.