We were talking with an insurance agency who has just brought on an online application that can be completed by Insurance Advisers (brokers). It was brought up that with today’s technology and people’s thirst for the internet the use of an Insurance Adviser (broker) is now, more vital than ever. So why is this? Why in a world where information is so abundant would we need a third party to arrange a product that you can get online or over the counter?
INTERPRETATION:
In almost every case where someone wants to arrange an insurance or review it they will ask for the “cheapest” policy. But not all policies are equal. While cost is a major consideration it is important to know why the insurance premiums would differ – is it that they are covering something that another policy is not? This is all about the expectations and priorities of the client being met by the policy that they purchase. An Adviser is experienced in the insurance terms and what they mean. What can seem an innocuous exclusion could have severe ramifications and an Adviser is able to point this out.
HASSLE
Most clients find the reading of policy terminology and comparing this to others to ascertain if the policy is right for them labourious and time consuming. An Insurance Adviser has to know what each policy covers and how this relates to the needs of their client.
ADVICE:
Often people come in wanting one type of product but upon further investigation it’s realised that another product would be better suited. Something that maybe they didn’t even know existed for an issue they hadn’t thought of.
CHOICE:
Some insurance agencies will only sell their insurance products via an Insurance Adviser. The reason for this is that they can be confident that the correct advice is getting through to the client and expectations will be met if a claim ever needed to be made. So using an Insurance Adviser means that you would have more choice of products from a bigger range of insurance agencies.
LIABILITY:
Using an Insurance Adviser means that you have some recourse if the worst should happen and you have to make a claim. This is one of the reasons why Insurance Advisers are so precise when putting their recommendations together because come claim time if they get it wrong there are severe repercussions for them as well as the financial impact on their client.
COST:
Due to the volume of business often insurance Advisers can have access to lower cost products. But it is their skill and expertise in identifying your actual needs and eliminating any excessive items on your policies leading to more expense being paid for something that may have not been offering any benefit. .
Finally the cost of an insurance adviser/broker is free. So for less cost, more protection, less hassle, good sound advice and for free – the question isn’t “why would you use an Insurance Adviser” but “Why wouldn’t you?”.
