Broker vs Direct: What's the Difference?
When you need business insurance, you have two main options: go direct to an insurer, or work with an insurance broker. The difference matters more than most business owners realise.
Going direct means you approach a single insurance company — say, Chubb or Tokio Marine — and ask for a quote. They'll offer you their products at their prices. You're dealing with the insurer's sales team, whose job is to sell you their products.
Using a broker means you work with an independent intermediary who represents you — not the insurer. A broker compares products and pricing across multiple insurers, advises you on the right coverage, and advocates for you when you need to make a claim.
The key distinction: an insurer's agent works for the insurer. A broker works for you.
Why Use a Broker?
For Singapore SMEs, the advantages of working with a broker are practical and measurable:
Access to the whole market. A broker compares options from multiple insurers — at TRS, we work with 18+ leading insurance companies. This means you're not limited to one insurer's products or pricing. Competition between insurers works in your favour.
Better pricing through volume. Brokers place hundreds of policies a year. That volume creates buying power — better rates, broader coverage, and preferential terms that individual buyers can't negotiate on their own. We regularly see clients save 15–30% on premiums when switching from a direct relationship to a brokered placement.
Expert advice. Insurance policies are complex documents. A good broker reads the fine print, identifies gaps in your coverage, and recommends the right combination of products for your specific situation. They'll also flag risks you might not have considered.
Claims support. This is where a broker earns their fee many times over. When you need to make a claim, your broker manages the process — documentation, insurer communication, dispute resolution. You don't have to deal with the insurer directly. In contested or complex claims, broker advocacy can make the difference between a claim being paid and a claim being denied.
Ongoing service. A good broker doesn't disappear after selling you a policy. They review your coverage annually, adjust for changes in your business, remind you of renewals, and keep you informed about market developments that affect your insurance.
What to Look for in a Broker
Not all brokers are created equal. Here's what to evaluate:
Independence. Is the broker truly independent, or are they tied to (or owned by) specific insurers? An independent broker has no conflicts of interest — they recommend what's best for you, not what earns them the highest commission. Ask directly: "How many insurers do you work with?"
Specialisation. Does the broker understand your industry? A broker who knows the construction sector understands CAR insurance, MOM WICA requirements, and BCA contract conditions. One who specialises in tech understands cyber risk, PI coverage for SaaS companies, and PDPA compliance. Industry knowledge matters.
Responsiveness. Insurance needs don't always arise during business hours. How quickly does the broker respond to emails and calls? Can you reach your account manager directly, or do you go through a call centre? In our experience, responsiveness is the single biggest differentiator between good and bad brokers.
Claims track record. Ask about the broker's claims process. How do they handle claims? Do they have dedicated claims staff? Can they share examples of claims they've successfully advocated for? A broker who's never had to fight a claim on a client's behalf probably hasn't been tested.
Digital capability. In 2026, there's no reason to be faxing insurance documents. A modern broker should offer digital quotes, e-signatures, online policy management, and clear communication through channels you actually use — email, WhatsApp, or a client portal.
Questions to Ask Before Choosing
Before you commit to a broker, ask these questions:
- How many insurers do you have access to? More insurers means more competition and better options for you.
- Do you specialise in my industry? Industry expertise means more relevant advice and better policy structuring.
- Who will be my main point of contact? You want a dedicated account manager, not a rotating support team.
- How do you handle claims? The answer should be specific — not just "we help with claims."
- What does your service include beyond placing the policy? Look for annual reviews, risk assessments, market updates, and renewal benchmarking.
- How are you compensated? Brokers are typically paid a commission by the insurer (built into the premium), so using a broker doesn't cost you more. But it's worth understanding the arrangement.
- Can you provide references from businesses similar to mine? A confident broker will happily connect you with existing clients.
Why SMEs Choose TRS
At Trade Risk Solutions, we built our brokerage specifically for Singapore SMEs. That means:
- 18+ insurer partners — we shop the entire market for every client
- Dedicated account managers — one person who knows your business, reachable by phone, email, or WhatsApp
- Digital-first process — quotes within 24 hours, digital documents, no paperwork runaround
- Claims advocacy — we manage the insurer relationship so you can focus on your business
- Industry expertise — deep knowledge across construction, F&B, logistics, tech, retail, and professional services
We're not the biggest brokerage in Singapore, and we're not trying to be. We focus on doing right by every client, every policy, every claim.
Talk to us about your insurance — it's free, takes 2 minutes, and comes with zero obligation.