Why Change your Insurance Broker?
(This article
was published in January 2006 in the SME ( Small &
Medium sized Enterprises ) Annual magazine)
You are perfectly happy with the price you pay and
the service you receive so why change?
Undeniably it is always your decision. But have
you ever sought from your Broker a choice of competitive
rates against the price that you are actually paying?
Have you ever asked 2 or 3 brokers to get you a
quote? If not, are you sure you can justify the
amount you are paying for insurance to your Board
and Shareholders alike if questioned?
The cost of insurance can’t be ignored, it’s a serious
overhead to carry, and should always be viewed with
the same disciplines as purchasing any other office
supply.
So have we at Trident Insurance* got a better approach,
and aren’t we just like any other broker? The answer
is we do have a better approach, and we are absolutely
not like other brokers.
Prior to taking over this business I had spent
25 years in equity trading and investment banking
in the London Stock Exchange. We went through 2
Big Bangs and had no choice but to change the way
we operated. The key difference to our working practises
was visibility. Suddenly the client could see what
was happening almost 24/7. It was a brave new world
all round.
Insurance on the other hand operates almost unchanged,
and the feeling remains, if it isn’t broke don’t
fix it. Well that is the nub of the problem, the
antiquated approach needs to change to give the
client more information, visibility and control.
You are told that each risk proposed is taken on
its own merits and is therefore unique. Not so,
there has to be a starting basis which establishes
a mean level of pricing. With that in situ, it is
only material changes, claims history and geographical
location that change the risk factor.
Brokers should be accountable for their performance
and with the commissions sometimes running at 20%
it’s the least they can do.
You may have had your broker say that because of
the good rapport they have with an insurance company,
they have been offered a discount to the market
rate of 10%. But who’s market rate, the general
one or the specific Insurers? Since the general
one is not visible, it really is a rather fatuous
comment to trust.
With no basis of visibility, rates offered can
and do vary enormously for exactly the same risk,
and you the Client take it on good faith alone,
that you have the best that could be achieved. It’s
the best that broker can provide, which is why without
visibility and the complete inability of one firm
to cover all Underwriters and Insurers you need
two brokers at least.
We think that brokers should be prepared to compete
for insurance business as they do in the equity
or capital markets and let the Client make the
decision on who to trade with.
The broker market is still substantially over supplied
so there will be no shortage of parties prepared
to compete for your business, and we very much want
to be on your list..
Your own company may be obliged to compete via
tendering for business. So whilst your insurance
broker is not supplying a product directly to you,
insofar as he/she is the agent. That should not
preclude your ability to search more thoroughly
by using more agents. Yes a bit more time is involved
to make and receive a few more phone calls, but
the potential cost benefit savings to your company
are too large to ignore.
Adopting this approach gives you the next best
thing to visibility and control, a position we suspect
you may not necessarily have at the moment.
To most Clients, it is the form filling and data
collection that frightens them into submission,
accepting by default that the broker knows best.
We feel this is taking advantage of a difficult
situation by design, and recommend the same approach
as with an equity portfolio transaction where investment
banks pitch to win the business.
Insurance brokers should be informed of what the
present proposal documentation and policy schedule
incorporates, together with any material changes
that have occurred or recent claims registered,
and seek to get the best rate. We are sure by adopting
this route you will be very pleasantly surprised
by the results
So why are we at Trident Insurance different when
everyone claims experience, good contacts and working
relationships with Insurers?
Yes we have substantial experience too, access
to many insurance companies and Lloyds syndicates.
But our overheads are lower, we don’t have or need
central city offices and all the expenses and charges
that go with them, and we are quite prepared to
negotiate on commission.
We will have meetings with you the Client as a
matter of course, but being within walking distance
to the Underwriter is not of any consequence today
when the electronic office works so well.
With insurance as with any product supplied, you
the Client need continued service
and not the lunch or drinks invite just before renewal
with the sole object of keeping you in tow for another
year.
We want to provide you with all year good service.
We know you need to establish not only the cost
and what you are covered for, but also what you
are not covered for, so that you can make an informed
decision.
We feel it’s about time a reality check took place
in the insurance broking industry and the supply
of information to Clients.
There is too much spin on what can be achieved
by those who can do no such thing. In most instances
people want to believe the spin volunteered regardless,
because they feel it will save them precious time
and make everything more convenient as a result.
They also hate to think they may be too cynical
by disbelieving!
We always recommend Clients to be proactive check
the market and save money.
Perhaps you see this article as spin, and working
with us would be a leap of faith that you are not
prepared to take. That in the final analysis is
your decision, but relationships drift and we always
work to keep our Clients, never taking them for
granted
By being given the opportunity to show our ability
to improve for you, we hope your confidence in our
performance grow and stay with us at each renewal
for many years to come
Earning your trust through competitive pricing,
consistently providing a good service all year is
integral and we have no intention of disappointing
you
In conclusion, be it for your Business, Commercial,
Buildings, Fleet, Factory, Public and Employers
Liability, Professional Indemnity, Personal or Domestic
insurance needs we want you to know that Trident
Insurance is there for you.
We will always welcome your call.
Robert D Marshall FSI
Director
Direct Line 020 8911 1405
Direct E-mail robertmarshall@aic.uk.net
Direct Fax 020 89111 1471
Main Tel No. 020 8553 5043
Main Fax No. 020 8911 1444
Enquiries: sales@trident.uk.net
Sales opening hours: Monday - Friday 09.00 a m
- 19.00 p m
Saturday 09.00 a m - 15.00 p m
General administration: Monday – Friday 09.00 a
m - 17.30 p m
*Trident Insurance is the trading name of Advanced
Insurance Centres Limited who are Authorised and
Regulated by the FSA. Registration No. 306128
"Trident Insurance, proven to improve"
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