Home – New Forums Starting your journey What could an Insurance Broker do that would really impress you?

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  • #988784
    Spurious
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    Hi everyone. Im starting an insurance broking firm and im looking for ways to differentiate what is really a dull and dreary product/service.

    What could i do that would make you say WOW!?

    Is there something a broker has done or not done that you wished other brokers would/wouldnt?

    Do you feel that you understand insurance well enough that you know what you need and just want prices or would you prefer someone to talk to you about your business and explain and advise on your specific risks and products that would suit?

    What sort of information would you like a broker to have on their website? in depth product breakdowns or short simple contact information?

    Would you prefer a broker to show you 10 quotes from 10 different insurers or recommend 2 options and tell you they got 10 quotes but are recommending these 2?

    Anything else youd like to tell/suggest to a nascent insurance broker would be most welcome

    Thanks in advance, looking forward to seeing some of you at the next meetup.

    #1168887
    Robert Gerrish
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    Hi again

    Sorry this earlier post of yours was mysteriously held in a moderation queue.

    Robert :)

    #1168888
    Spurious
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    Robert Gerrish, post: 195775 wrote:
    Hi again

    Sorry this earlier post of yours was mysteriously held in a moderation queue.

    Robert :)

    Thanks Robert, I assumed it was because Im a new member

    #1168889
    bb1
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    Th thing I fnd with brokers I have used, is they get you a good deal to start with, but than each year there after they just seem to renew with the same mob, doesnt appear to be any effort made to see if there are better deals around once they have you.

    #1168890
    Spurious
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    bb1, post: 195783 wrote:
    Th thing I fnd with brokers I have used, is they get you a good deal to start with, but than each year there after they just seem to renew with the same mob, doesnt appear to be any effort made to see if there are better deals around once they have you.

    Thanks for the input, and its certainly true of a lot of brokers unfortunately.

    In the balance between too much information and not enough, would a list of the companies approached and their quotations as a part of your renewal documents help? Any suggestions on how I might communicate to you up front either in my website/marketing material or in person that this is certainly how I intend to operate? ie to work as hard to keep your business each year as I did to earn it in the first place?

    I want to be open and honest, but I also dont want to sound like im just saying the right things to win the business

    #1168891
    alliedib
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    Some interesting questions Spurious – without trying to hijack your thread I have worked with a lot of clients in the Micro / SME space over the years so I can give you my feedback as an insurance broker (and sorry if this is TLDR – sometimes the important things are hard to condense – otherwise policy wordings would only be one page lol)….

    Spurious, post: 195767 wrote:
    Do you feel that you understand insurance well enough that you know what you need and just want prices or would you prefer someone to talk to you about your business and explain and advise on your specific risks and products that would suit?

    In my experience in the insurance industry (both as a broker/AR and also as a consumer), very few consumers actually know what they need. They THINK they know what they need, but really don’t know the intricacies of policies and how they operate, both as part of an insurance program and in isolation eg. A client may want Public Liability as a plumber with 5 employees – realistically they should also be considering a Management Liability policy… but how many plumbers know this policy exists?
    It is up to the insurance industry (and this is where I think the direct market leaves a lot to be desired) to educate the customer so they know where they have exposures and where they need cover.
    Furthermore, If a consumer asks you for A and you only give them a quote for A, without considering B, C & D and how it would apply to their business, you are not acting in the best interest of your client and are not providing ‘value add’. As such, you need to be able to dissect the clients risk and make recommendations based on what they are willing to retain and what they are willing to transfer.

    Spurious, post: 195767 wrote:
    What sort of information would you like a broker to have on their website? in depth product breakdowns or short simple contact information?

    It is hard to get the ‘right’ amount of information – too little and it glosses over the product, too much and the reader gets bogged down. I like it where you can identify how the product can benefit the consumer (claims examples always help – I use them a lot for my engineering / management liability / cyber clients).

    Spurious, post: 195767 wrote:
    Would you prefer a broker to show you 10 quotes from 10 different insurers or recommend 2 options and tell you they got 10 quotes but are recommending these 2?

    I think this is where you as a broker need to learn the market for the risks – this comes with experience. For each risk that comes in, I ensure that I have a grasp on who is in the market and how their policy / underwriting would affect my client – this way I am not wasting my time going to insurers that won’t write the risk presented.
    There is no point advertising that you can get 10 quotes for a client that requires a niche product, only to find that there are only 3 or 4 insurers that will write the risk.
    Even for non-complex risks, are you going to source 10 quotes and then compare them line by line to see exactly where the differences lie? If so, I hope your Broker Fee will be commensurate with the time taken to undertake the research. Bear in mind as well that many consumers have a tendency to commodity shop and will pay close attention to the bottom line (especially with so much choice). It is a common marketing theory that consumers choose the 2nd lowest price product when offered a comparison – I wonder if this pertains to insurance?
    How do I it?- I generally obtain 2 or 3 quotes for the client, depending on the market. I then review based on the client’s needs analysis and present my recommendation to the client.

    bb1, post: 195783 wrote:
    The thing I find with brokers I have used, is they get you a good deal to start with, but than each year there after they just seem to renew with the same mob, doesnt appear to be any effort made to see if there are better deals around once they have you.

    As bb1 mentions – this can be the case, but in a lot of instances the broker may be basing their recommendation to rollover the policy on a number of factors (not just price). A better deal is not necessarily the case if the cover is not right. I have clients that know they can get the policy cheaper through Insurer X, but continue with Insurer Y as we have structured the cover to ensure that any exposures are minimised.
    A classic example is where I held a farm policy with a particular insurer – the client had an exposure that not many insurers would cover (he had a large amount of jewellery with high values per piece). We reviewed the alternatives each year but always renewed the incumbent policy as we recommended it was the best policy for the client. One year, the client didn’t pay the premium and when we chased him he advised that he made alternative arrangements for approx 1/2 the price. When we told him to be careful about his exposures – he told me that he checked and that both policies were the same (which is never the case). A few months later I was speaking to the client about another matter when he advised me that his wife had lost a bracelet with a large value – his new insurer paid only $1,000 (as this was the policy limit) whereas we had it insured for its full value ($20,000)). Client thought he was getting a better deal – he found out when it mattered most that what we had provided was a far better deal – not cheaper, but far better.

    Spurious, post: 195819 wrote:
    I want to be open and honest, but I also dont want to sound like im just saying the right things to win the business

    I think you need to explain the process to the client as a better option than creating a rule for yourself and promoting based on this. If you put something definitive on your website eg. we will get you X number of quotes each year, every year, then you need to be sure that you do this religiously and not most of the times. I have seen brokers start up with the best of intentions and advertise certain details as a point of difference, only for that point of difference to be eroded as they became bigger and the workload increased.

    The key is that whatever you do, you be consistent and you ensure that both yourself and your client are on the same wavelength. I have never tried to be all things to all people or be the biggest in the marketplace – I just earn a comfortable living servicing my clients in a ‘dull and dreary’ industry that I am passionate about.

    Happy to have a chat with you if you like.

    Regards,

    Mark

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