We’re still catching up to the West: in some European countries, four out of five insurance transactions are made through brokers, whereas in Croatia, it’s barely around ten percent. On the other hand, the very fact that we have insurance brokers here is already quite significant. Here’s what it’s really about.
If you run a company or manage one, you know that business always carries risks. You’ve either already insured yourself or at least considered it. In doing so, you’ve probably examined what insurance companies offer, how much the premiums are, how claims are handled, and how the process works. Very often, this research is prompted by insurance agents, who act as an extended arm of insurers. But in business, there’s a better solution: engaging an insurance broker, who works exclusively on behalf of and in the interest of their clients.
Here are five key things you should know about insurance brokers:
Brokers primarily work for the client
Hiring an insurance broker is essentially like adding an in-house insurance department to your company or project. This department then takes full responsibility for all insurance-related matters in your interest. Insurance is not just about signing policies—it’s a crucial part of risk management for your company or project.
Moreover, hiring a broker can be even more cost-effective than creating an in-house department. In Croatia, brokers generally work on a pre-agreed commission paid by insurers they partner with. It’s also possible to pay a broker solely for advisory services or fully retain their services independently. In that case, the broker cannot charge the insurer for the same work.
As business and insurance needs have grown more complex, distribution has split: agents are increasingly focused on retail and individual clients—cars, homes, life, and supplementary health insurance. Brokers, by contrast, focus on companies and entrepreneurs, helping owners and management with risk management and insurance coverage.
Be aware that some agencies present themselves as brokers since Croatian law allows representing multiple insurers simultaneously. The essential difference is that brokers represent their clients, while agents represent insurance companies. Of course, insurers remain our partners, but we work only with those who are fair in claims handling.
Brokers are part of the international market and offer tailored solutions
Our relationships with international insurers are crucial, as they provide specialized solutions not available locally. Through these solutions, we have demonstrated our expertise over years of collaboration. International insurers provide the highest-quality partners for arranging specialty insurance.
A key difference between brokers and agents is that brokers are part of the global insurance market. They can offer both standard and specialized insurance from the EU market under the Freedom of Services (FOS) clause, and if needed, access solutions worldwide. This is particularly important for companies with multinational operations, as brokers can provide legal support in other countries and ensure insurance standards are maintained.
This is also vital for clients requiring specialty insurance—film production, events, athletes, sports clubs, or professional liability for activities that are not legally mandated in Croatia but are essential for international operations. Many critical insurance types are unavailable locally, and the only way to access them is through brokers. That’s why our company, DPS Specialty, is unique in Croatia and Slovenia in providing these specialty insurance services.
International access provides better coverage at lower cost
Access to the international market ensures that clients receive higher-quality and often more affordable insurance, particularly for specialty coverage. When insurance is arranged internationally, risk management and coverage are based on standards shared by thousands of clients in similar industries worldwide. For example, insurers covering films globally insure tens of thousands of productions annually, whereas Croatia produces only around a hundred audiovisual works per year.
Local insurers cannot spread the risk effectively for niche industries like film, so premiums would be much higher. Brokers provide access to international solutions, offering cost-effective and reliable protection.
Insurance today is a highly complex industry, built on years of analyzing risks and designing optimal coverage. The sector is under significant stress from global political tensions, pandemics, and the rising frequency of natural disasters caused by climate change. This makes expert brokers essential to finding suitable solutions in a turbulent environment.
Not all brokers are equally skilled in every type of insurance
The diversity and complexity of the insurance market mean that no broker can be equally proficient in all types of coverage. When hiring a broker, verify their expertise in the specific insurance you need. For large organizations, it may even make sense to engage multiple brokers, each handling the areas where they are most skilled.
A broker’s role typically includes:
- Risk analysis: Identifying risks and distinguishing which can be covered by insurance.
- Reviewing active policies.
- Collecting business and operational data to structure insurance requests.
- Proposing a new insurance concept.
- Collecting and analyzing insurance quotes.
- Arranging policies and providing all necessary documentation.
- Updating policies and issuing certificates.
- Handling claims and advising on legal or expert involvement.
- Managing policy renewals.
- Reporting on claims, reviewing premiums, and providing other requested reports.
Risk management is a fundamental responsibility for any manager. Engaging a broker ensures this aspect is handled at the highest professional standard.
Brokers carry professional liability insurance
Managers, producers, organizers, and anyone responsible for company operations are accountable for their decisions. Engaging a broker significantly reduces the risk of errors in risk management and insurance coverage design. Brokers in Croatia are insured for professional liability under EU standards, with minimum coverage of €1,564,610 per claim and an aggregate limit of €2,315,610 per year.
While brokers do help navigate policy fine print, their value goes far beyond that. Building a reputation with clients and insurers takes years of expertise, professionalism, and integrity. Brokers continually develop their skills to protect their clients effectively.
Choose your broker carefully.
If you need advice, risk assessment, or optimal insurance coverage, you can trust us to provide professional guidance.
