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Direct Insurance Vs. Insurance Brokers & Intermediaries

The insurance landscape can be overwhelming, with a range of coverage options and avenues of purchasing cover. Finding the appropriate insurance option for you through a reliable provider is important to ensure that, in the event that you need to make a claim, all is managed as soon as possible with no surprise exclusions or limits in cover.

AFCA explains that insurance complaints have risen by 50% in the past year, with a 76% increase in complaints surrounding delays, as well as a 42% rise in complaints of claim settlements. As the industry is currently under pressure following claims associated with recent natural disasters and the record floods in Queensland and NSW in 2022, it is more important than ever to select an appropriate company or intermediary that will efficiently cater to your needs.

Often, you may not realise there are issues with your insurance until you experience a claim and learn where cover is lacking, leading to frustration and financial loss. The method through which you acquire your insurance can mean you are given appropriate guidance and education around your coverage to avoid problems further down the track.

How does Direct Insurance compare to Insurance Brokers? Learn more about the type of Insurance Provider that may be most suitable for you.

What Is Direct Insurance?

Direct Insurance involves purchasing policies directly from an Insurance Company without an intermediary. This involves dealing directly with the company throughout the whole process, from policy purchase to claim handling.

What Is An Insurance Broker or Intermediary?

Intermediaries include Insurance Agents and Insurance Brokers that operate between consumers and Insurers to offer the most appropriate insurance placement. An intermediary’s primary role is to assist clients in finding the most suitable policies for their specific needs, and offer professional advice. They are also able to offer access to a broad range of insurance products from various Insurance Companies, rather than from just one.

Advantages And Disadvantages Of Direct Insurance


Generally fast online application for efficient, convenient purchasing.
Can be lower cost due to streamlined delivery.
24/7 customer service or online portals are available to manage and access policies.


Limited options or access to compare policies.
No adviser to point out any deficiencies in coverage.
Lack of personalisation.
A system-generated Renewal process, in many cases without personal interaction.
May not fully address complex coverage needs.
More time spent researching policies.
Difficulty handling claims yourself and knowing how to most effectively position your loss.
Limited industry knowledge or advice on market trends & changes.

Advantages And Disadvantages Of Intermediated Placement


Professional, objective advice.
Access to a range of Insurance Companies & coverage options.
Access to competitive pricing.
Personalised insurance solutions.
Time saved on research.
Risk assessment for comprehensive risk management.
Ongoing support and review of policies.
Specific business industry knowledge.
Suitable for Businesses and Individuals with complex insurance needs including: high-value property & possessions
Often specialists in niche industries, professional liability, cyber liability, international operations, high-risk activities, non-standard homes, environmental liability.


More comprehensive risk analysis which whilst leading to a better outcome may take a higher investment of time.

Which Should You Select?

Often when insuring low / mid value Home and Contents or standard Motor Vehicles direct is a good choice. An Insurance Broker is a good solution for personalised expertise, and access to broader insurance options including risk management advice. A reputable and transparent broker such as Atlantic can provide comprehensive advice and a personalised insurance plan, which is especially important for those with complex needs.

Comprehensive, Personalised Cover With Atlantic Insurance Brokers

Atlantic Insurance and its Client Managers have been providing insurance solutions across Melbourne and Australia-wide since the early 1980s. Offering a high level of personalised service, strong relationships with local and global insurers and 40 years of risk identification experience, you can rely on Atlantic to ensure all your needs are met and claims are efficiently handled.

We can offer a tailored Insurance Program for businesses, plumbers and trades business, Aged Care providers or personal insurance. Contact us to discuss your insurance needs today.

Any information contained on this page of the website is general advice only and has been prepared without taking into account your objectives, financial situation or needs. Your should consider these, having regard to the appropriateness of this advice and the relevant Product Disclosure Statement (‘PDS’), Target Market Determination (‘TMD’) and Financial Services Guide (‘FSG’), which will be provided following any formal recommendation to you.

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