Prospective insureds seek appropriate insurance cover priced competitively. Finding an intermediary who takes the time to understand your business, and the unique risks it faces, is essential to achieve this goal.
For your intermediary to act on your behalf effectively, they must ascertain what risk is to be transferred by insurance and alternative means (i.e contractually or by qualifications, procedurally etc). On understanding the prospective insureds own appetite for risk, the intermediary may then collect relevant underwriting information and then articulate the risk comprehensively to “motivated” insurers.
Key points to consider when selecting an intermediary:
Personalised advice
Your intermediary should be able to offer service tailored to your industry, your specific business and your goals and expectations. Their ability to understand and articulate your unique needs and challenges is the foundation for an effective insurance and risk management program.
A transparent approach
Trust and transparency are key to a successful client/intermediary relationship. In short, the preferred insurer should be the insurer proposing the best package for the client – not the insurer who remunerates the intermediary at a higher rate. Of utmost importance is the intermediary’s commitment to represent your interests (and not the interests of insurers or underwriting agencies).
Relevant industry experience
An intermediary should have sufficient expertise in risk management, placement of policies and claims management. Only then may it be appropriately placed to procure the most appropriate policy (coverage) and premium outcome for their client. Experience is often the best measure of capability in this regard. Before appointing an intermediary, consider the relevance of their experience acting for others in your industry, of a similar business size, maturity and who possess a similar risk appetite to you.
Reputation and referrals
An intermediary with a solid reputation and strong relationships will be well known amongst your industry competitors. It will otherwise be acknowledged by its own peers and or insurers in the “insurance market”. If an intermediary is working with businesses similar to your own, it is a positive sign that they are experienced to understand your risk and more importantly it shows that they have relationships with insurers in the market so it is able to place your policies. Seeking a referral from your own network of associates is a good place to start. Alternatively, you may also ask the intermediary for a referral from one of their current clients. It is also important for your intermediary to work closely with your other professional advisors, in particular your lawyer or accountant.
To discuss your insurance needs, please contact a Bellrock Advisor.
