Choosing a broker
Most clients recognise that selecting corporate insurance advisers is not the easiest of decisions to make. It is tempting to select the broker that produces the cheapest quotation at any one time or choose the company that delivers the most professional presentation.
Sometimes using these criteria proves to be successful, but all too often there is disappointment with the actual results delivered by a new broker in the period following appointment. It is perhaps worth reviewing, therefore, the key issues and criteria that are vitally important in the selection process.
What should you expect an Insurance Broker to do?
- To develop a deep understanding of your charity.
- To present your Charity to insurers in the most effective way.
- To secure the most attractive terms for your insurance cover in a way that delivers the best value over the long term.
- To provide first class support to your staff with routine issues and claims management.
- To inform, support and advise you on risk management programmes, changes in legislation and other ways of minimising insurance costs as an overhead.
How can you assess Insurance Brokers?
Giles believe the following will assist the decision making process:
How well does the broker understand my Charity?
It is important for the prospective insurance advisers to demonstrate that they have a good understanding of your organisation.
Who will present your Charity most effectively to the insurance market?
A charity’s image with insurers can be diminished or enhanced by the way that it is presented to the market place. This aspect of image management can be viewed as a cross between public relations management and an advertising agency approach.
The optimum outcome is where the charity is regarded as a most desirable risk and underwriters are competing to become the insurers. This has often not been the case, with some voluntary organisations having the reputation of being unattractive risks for underwriters to take on.
Can you stay with existing insurers if you change brokers?
Yes, most insurance brokers have access to the same insurance markets and are able to work with a client’s existing insurers following a transfer.
Giles has excellent relationships with the UK’s major insurers and as such is usually able to access the same insurance terms and premiums. In many cases, because of our voluntary sector specialism, we are able to improve upon premiums and cover as a result of our relationship with insurers.
Who will secure the best premiums and long-term value?
It is important for the broker to know which insurers will be most supportive of the risks being put forward and have experience of how to present these risks. Insurance brokers successfully managing a large amount of business will also have a credibility that influences underwriters.
Many insurance companies are moving away from underwriting based on "occupation" and over to a basis that assesses the quality of corporate management. The insurance adviser should, when needed, agree a "business plan" with the voluntary organisation and the key insurers that will deliver the best value over the long term. The brokers should act as project managers for the plan and co-ordinate all parties involved in risk management programmes.
Who will handle the account on a day to day basis?
The quality and relevant experience of the actual team of people who will manage your arrangements inside the brokers’ office is an important factor for any client contemplating appointing a new broker. This can be very different from the “professional presenters” who often secure new clients before passing them on to a back office staff.
Tel: 0121 200 4920Fax: 0870 1973289
