Insurance Broker FAQ

  • An insurance broker acts as an independent adviser who helps you find, set up, and manage your insurance. They work on your behalf, not on behalf of any single insurer to assess your personal situation, compare policies across multiple providers, and recommend the cover that best fits your needs and budget.

  • Using an insurance broker gives you access to independent expertise, multiple insurer options, and ongoing support.. Here are the main reasons Kiwis choose to use a broker:

    Independent advice. A broker's job is to serve your interests, not to sell you a specific company's product. You get honest guidance on what cover you actually need.

    Access to the full market. Brokers work with all major NZ insurers simultaneously. AIA, Fidelity Life, Partners Life, Asteron, Cigna, and sometimes more. This means you're not limited to one company's product range.

    Claim support. When something goes wrong and you need to claim, having an experienced broker in your corner can make a significant difference. Brokers know how to navigate the process and can advocate on your behalf if an insurer pushes back.

  • Yes, using an insurance broker in New Zealand is free, for most brokerages. Brokers are compensated through commissions paid by the insurer when they place a policy, meaning you don't pay a fee directly for their advice.

    Your premium will be the same whether you go directly to an insurer or use a broker. There is no mark-up added for using Elan's services.

    Elan has always offered free advice, there's no obligation to buy, and we work with all the major NZ insurers to find the best fit for your situation.

    Some specialist brokers (particularly in commercial insurance) may charge an advice fee for complex cases, but for personal life, income, and health insurance in NZ, broker advice is almost always free.

  • No, using an insurance broker in New Zealand does not cost more than going directly to an insurer. Your premium is set by the insurer and is the same regardless of whether you apply through a broker or directly. The broker's commission is already built into the insurer's pricing structure.

    In fact, using a broker may result in you getting better value, because:

    - A broker can compare across all major NZ insurers to find the most competitive policy for your profile.

    - They may be aware of special terms or arrangements not available to direct applicants

    - They ensure your cover is structured correctly, avoiding both over-insurance (paying for cover you don't need) and under-insurance (gaps that could cost you at claim time).

    The real cost of not using a broker is potentially paying for the wrong cover, or having a claim declined because of a policy detail you didn't know about.

  • In New Zealand, insurance brokers are primarily paid through commissions from the insurer when they place a policy on your behalf. The commission is a percentage of the premium paid to the insurer, and it's built into the insurer's standard pricing. This means that you pay the same premium whether a broker is involved or not.

    Brokers are required by New Zealand financial services law to disclose how they are remunerated. This disclosure is provided as part of the advice process.

    Some brokers may also receive ongoing service commissions for continuing to manage your policy, which incentivises them to maintain the relationship, support renewals, and help with claims over time. Elan provides a full disclosure statement outlining our remuneration as part of our advice process which can be found here - https://www.elan.co.nz/disclosure.

  • The key difference is independence and scope. When you go directly to an insurer, you're working with someone whose job is to sell that company's products. When you use an insurance broker, you're working with someone whose legal and professional obligation is to act in your interests.

    When going directly to an insurer, you can only access that company's products and you receive no independent comparison of the market. There's no one in your corner at claim time.

    Getting advice through an insurance broker means that you receive advice across multiple insurers simultaneously, structured cover tailored to your situation, and ongoing support through claims. You also have a professional relationship with someone who has a duty of care to you.

    For simple, commoditised insurance products, going direct can work fine. For life, trauma, income protection, and health insurance going through an  independent broker advice tends to deliver meaningfully better outcomes.

  • An independent insurance broker, like our advisers at Elan, works for you, not the insurance company.

    This is different from an insurer's sales representative, whose primary loyalty is to their employer. A broker is independent and is not allowed to recommend a product that isn't suitable for your needs, even if it pays them a higher commission.

    Brokers are required to prioritise your interests over their own financial interests. They must disclose any conflicts of interest and explain how they are remunerated. If a broker recommends a product, it should be because it genuinely suits you not because it pays them the highest commission.

  • Absolutely and this is one of the most valuable things a broker provides. Navigating an insurance claim can be stressful and complex, particularly when you're dealing with a serious illness or injury. A broker can manage the entire process on your behalf.

    At claim time, Elan will:

    - Help you understand what you're entitled to under your policy

    - Assist you in preparing and submitting your claim correctly

    - Liaise with the insurer on your behalf

    - Advocate for you if a claim is queried, delayed, or disputed

    - Negotiate to ensure you receive the full settlement you're entitled to

    Studies consistently show that claimants who go through a broker receive faster payouts and face fewer disputes than those who claim directly. This is because brokers know the process, speak the insurer's language, and understand your policy in detail.

  • Look for a broker who is registered on the Financial Service Providers Register (FSPR), holds a New Zealand Financial Advice Provider license, and has a track record of genuine client service, not just sales.

    Key things to look for:

    - Registered on the FSPR

    - Independent and works with multiple insurers, not tied to one company

    - Transparent about how they're paid

    - Willingness to give advice without pressure to buy

    - Strong client reviews and a history of claim support

    Elan has been a trusted Auckland based insurance broker since 1992 and has helped over 4,000 New Zealand families and individuals with their insurance needs. Our team offers free, no-obligation advice and works with all major NZ insurers.

  • Yes they are. Insurance brokers providing financial advice in New Zealand are regulated under the Financial Markets Conduct Act 2013 and must comply with the Code of Professional Conduct for Financial Advice Services.

    All New Zealand insurance brokers providing personalised advice must:

    - Be licensed as a Financial Advice Provider (FAP) or be an authorised body under a licensed FAP

    - Be registered on the Financial Service Providers Register (FSPR)

    - Act in the client's best interests

    - Disclose conflicts of interest and remuneration

    - Have complaints and dispute resolution processes in place

    The Financial Markets Authority (FMA) oversees this regulation. If you have a complaint about a broker that isn't resolved, you can take it to their approved dispute resolution scheme. A broker’s dispute resolution scheme should be made clear to you by them in their disclosure statement and ideally be listed on their website as well. The approved dispute resolution scheme Elan works with can be found here.

  • The Financial Service Providers Register (FSPR) is the official government register of all individuals and businesses authorised to provide financial services in New Zealand.

    Any insurance broker, financial adviser, or insurance company providing services in NZ must be registered on the FSPR. Registration confirms that the provider meets the legal requirements to give financial advice, including holding an appropriate license, maintaining professional indemnity insurance, and belonging to an approved dispute resolution scheme.

    Before working with any insurance broker, it's worth checking that they're on the FSPR. It takes 30 seconds and gives you confidence that you're dealing with a regulated, accountable professional.

  • When meeting with an insurance broker, these questions will help you get the most out of the conversation:

    About their service:

    - Which insurance companies do you work with?

    - How are you paid, and does it affect what you recommend?

    - Are you licensed under the Financial Markets Conduct Act?

    About your cover:

    - What types of insurance do I actually need for my situation?

    - What would happen to my family financially if I died or couldn't work?

    - How much cover is appropriate for my income, debts, and family?

    - What are the key differences between the policies you're recommending?

    About claims:

    - How do you support clients at claim time?

    - Have you had any claims declined for clients, and how were they resolved?

    A good broker will welcome these questions. If you feel pressured or rushed, that's a red flag.

  • For most New Zealanders taking out life, income, or health insurance, using an insurance broker is the better option. Particularly for anything other than the most basic cover.

    The reasons are straightforward. A broker costs you nothing extra, gives you independent advice across the whole market, and provides ongoing support including at claim time. Going direct means you're limited to one company's products and have no independent advocate if a claim becomes complicated.

    If you have a very simple, well-understood need and are confident in comparing policies yourself, then going direct might make more sense for you. 

    For policies that require careful consideration of definitions, exclusions, and structure (which life, trauma, and income protection all do)  independent broker advice typically results in better cover, fewer nasty surprises at claim time, and a relationship you can rely on when things go wrong.

  • Your premium (the amount you pay for the insurance policy) is set by the insurer and doesn't change based on whether you use a broker. This means that while an insurance broker may be able to secure a lower price than you would get going direct, oftentimes it’s more about securing better value. 

    This is because what a broker can do is find the policy that gives you the best cover for your money, not just the cheapest headline premium. Two policies might be priced similarly but have very different claim outcomes in the real world, based on how they define conditions, handle exclusions or process claims. 

    Going through an insurance broker also ensures you’re not paying for cover you don’t need, and that you’re not under-insured in areas where you actually need protection. Getting this right is often worth more than a marginal difference in premiums.

  • In New Zealand, the two roles do tend to overlap quite a bit, so this is a great question. 

    An insurance broker is a type of financial adviser who specialises solely in insurance. This can be life, health and disability insurance or fire and general insurance. Typically one broker won’t cover both categories. At Elan, we specialise in life, health and disability insurance. We do have relationships with trusted Fire and General insurance brokers as well, should you need to discuss things like your home and contents insurance.

    A financial adviser has a broader scope. Their advice typically covers multiple areas in the financial services industry. Under New Zealand’s Financial Markets Conduct Act, both financial advisers and insurance brokers are regulated as Financial Advice Providers (FAPs) and must act in your best interests at all times. The distinction in practice is mainly around specialisation.

    For insurance-specific needs, an insurance broker typically has deeper product knowledge across NZ insurers than a generalist financial adviser. Elan focuses exclusively on life, health, and income insurance as well as KiwiSaver ensuring our advice is genuinely expert in that domain.