Are Insurance Advisors and Insurance Brokers the same thing?

While these terms are often used interchangeably by many New Zealanders, they represent distinct roles under the regulatory framework set by the Financial Markets Authority (FMA) in New Zealand.

 So, what is the difference?

 Insurance brokers primarily operate in the general insurance market. Acting as intermediaries between clients and insurance companies, brokers negotiate terms and premiums for various types of insurance such as house, contents, car, commercial and liability covers. They work closely with specific insurance companies, navigating the underwriting process based on clients’ needs, claims history, and risk profiles to secure suitable offers. Brokers will collect your premiums directly sometimes charging an administrative fee before passing them onto the Insurer.

 On the other hand, insurance advisors , like Abacus Group Advisors are independent professionals who collaborate with all the major Life Insurers in the New Zealand Market. Clients pay their premiums directly to the Life Insurer; these are not handled by the advisors.  Abacus Group advisors are paid a commission from the Life Insurer and do not charge you a fee for their advice.

 Our approach involves understanding client’s financial goals, gathering comprehensive information about your circumstances (including employment status, income, dependents, health and medical history for personal insurance or risks and financials for business insurance), and tailoring insurance solutions accordingly.  Our advisors provide personalised advice, recommend suitable products, handle the application process, and regularly review our client’s coverage to ensure it aligns with their evolving needs.

One significant advantage of personalised advice over online options is the assurance of obtaining the best coverage for specific situations, along with dedicated support during the claims process. 

Abacus Group Advisors are all qualified Financial Advisors regulated by the FMA, who prioritise client satisfaction and transparency throughout their services.

For more details see our important information page.