Everyone realizes the importance of being innovative and vigorous to survive and grow in a competitive environment says Helen Szemerei, Director: Insurance Services at the IntegriSure Group. The insurance industry is no exception. The way in which innovation is implemented, however, is justifiable only if it benefits the client.
It is often asked whether insurance products can really be tailor-made without extra cost to the client. The answer is most definitely YES! Individuals who can make informed decisions, effectively have access to considerably better and often less expensive products. But informed is the operative word .
The public is often unaware of all the insurance permutations, which makes a well-informed decision impossible. It is at this point where an independent, professional advisor is of critical importance.
Because Joe Public is seldom confronted with all the variations and possibilities, naive decisions can easily be made – with bitter consequences. Unless they are informed otherwise, clients tend to assume that ‘everything’ is covered... only to be in for a shock once they have a claim. This does not only harm the individual, but also causes untold damage to the industry.
Professional service providers cannot merely shrug it off by exclaiming: “But they never asked!” There is a professional obligation to ensure that the client is properly informed and that the needs and requirements of each client are carefully assessed.
Szemerei states that a service provider who only focuses on the policy and premium does not deserve to be called ‘professional’.
The public should be informed in such a way that they are able to determine their risk levels themselves. For instance, a person who is totally dependent on a vehicle, needs to include a hire-car in the policy. Someone else may prefer a lower premium with a higher excess for a vehicle that is seldom used, or a person residing in a maximum security complex may decide on fire insurance only.
One has to consider the fact that the client is not exposed to matters of this nature every day. Consequently, he may lose track of detailed information such as the replacement value of his household contents. The advisor has to provide guidance in this respect as well.
After all, the role of the advisor is to find and retain a client. That is why a professional, financial advisor will always seek and adjust where necessary, in order to offer the client the best product at the best possible price.
A professional service provider may never guess the requirements of his clients. He has to know his market and assess the needs – or be stabbed in the back later by even the best innovations.