There are a lot of misconceptions around the value of an insurance adviser, and why your business might consider using one for your insurance needs versus going to a global broker that uses a corporate model. We’ve identified a few points of differences and things to take into consideration when selecting who you go to for your insurance needs.
The difference between an insurance adviser and a corporate insurance service model
So what exactly are the differences between an insurance adviser and a corporate insurance model?
- An insurance adviser is often a small family business, perhaps part of a wider network to provide the same advantages in regards to policy wordings and clout with insurers, but at the end of they day it’s their business and they have skin in the game and a vested interest to looking after their clients.
- A corporate insurance model is typically found at a national or international brokerage, where there are different functions to look after your needs at various points of the insurance lifecycle (i.e. a business development manager to win your business, an account manager or their assistant to deal with renewals and queries, a claims manager or outsourced/offshore claims team to manage your claims).
A piece of paper (or PDF) and a promise
There’s an old saying that insurance is really just a ‘piece of paper and a promise’ (or these days often more accurately, ‘a PDF and a promise’). When that promise is brought to fruition and tested is in the event of a claim. But there are a lot of steps that happen with insurance before the claims step, such as:
- Discovery – this is the first step your insurance adviser or insurance broker should take when putting together your insurance solution and again at renewal. It involves a deep dive into your business and business activities, to make sure we have a strong understanding of your risks.
- Risk assessment and mitigation – a good adviser or broker will also work with you to help you understand which risks might be better to manage instead of just insure. Some examples might be improved safety practices, education for your employees, and avoiding some risks altogether (such as deciding not to offer a particular service or product if the risk is deemed not worthwhile).
- Marketing/placement – the benefit of going with either an insurance advisor or a corporate insurance service model is that they both should go to bat for you with the insurers and underwriters, to put together a tailored insurance solution that is competitively priced and covers your needs.
- Claims management – a-ha, so here is the step that really matters. When it comes to managing your claim, you’ll want your insurance adviser or broker to be your #1 advocate, making sure that you’re paid anything that you’re owed, as soon as possible. You’ll want them to have your best interests at heart, and to truly care about the outcome for you and your business.
So should you use a corporate team or an insurance adviser?
There’s no ‘right’ answer to this question, but you should take some time to really consider what you expect from your insurance intermediary. Often businesses go with global brokers because of brand familiarity or pressure from the board to select an established brokerage. But will that deliver the results that you’re after? Consider whether an insurance adviser might provide you with an end-to-end service, with one key contact that knows your business inside and out. You’re not just a number when it comes to a claim, you’re a valued client that often becomes a friend. If a trusted relationship and a high care factor is important to you, then perhaps there’s no harm in getting an insurance review or an insurance quote from an insurance adviser for your business.
Get a quote from an insurance adviser
Remember that every business is different and you’ll have your own set of opportunities and challenges. Contact us if you’d like a complimentary review of your current insurance solution, or a quote.
This article provides information rather than financial product or other advice. The content of this article, including any information contained in it, has been prepared without taking into account your objectives, financial situation or needs. You should consider the appropriateness of the information, taking these matters into account, before you act on any information. In particular, you should review the product disclosure statement for any product that the information relates to it before acquiring the product.