The insurance industry is diverse, with more than 200 insurance companies offering different types of insurance cover. It can be a minefield wading through the wealth of insurance cover available, and it could be that you are thinking about obtaining professional advice.
So why do you need a professional insurance adviser, and what are the benefits?
Instead of spending a lot of time trying to find the right type of insurance for you and your business, at the best premiums, then spending time comparing lots of different products with different coverages and sums insured options, your insurance adviser can do all that for you, as well as giving you the best advice when claiming.
An insurance adviser can explain key terms, conditions, costs, benefits and exclusions and is able to offer a range of options from a number of insurance companies. It’s worth knowing that many insurers wont deal with businesses directly, only through insurance brokers and advisers. Working with an insurance adviser means you will get a bespoke insurance program that maximises cover and minimises the costs, for your specific circumstances.
Insurance advisers work for you, act in your best interests and also help you get the best outcome in the event of a claim.
What is an Insurance Adviser?
In a nutshell, an insurance adviser is a professionally qualified insurance intermediary that works for you and acts in your best interests.
Insurance advisers deal with many insurers that don’t deal with businesses directly, providing a broader range of options than you may otherwise obtain.
The best insurance advisers in Australia are representatives of insurance broking companies who provide you with personal advice, not just sell insurance products.
An insurance adviser also usually earns some commissions, which the insurance companies pay, as they save on administration and other costs.
So now we’ve discussed what an insurance adviser does; let’s find out how they can help you, your family or your business.
What Insurance Advisers Do
1. Understand your Objectives, Needs and Financials situation
From talking to you, asking questions and completing risk questionnaires, an insurance adviser can suggest ways to reduce your risks, including recommending appropriate types of insurance cover, so that you can make an informed decision about to managing risks and buying appropriate insurance.
2. Find the right insurance cover
Undertake risk assessments and conduct market research to determine the most suitable insurance product to meet your or your business risk exposure. Then, present appropriate strategies and solutions to you and negotiate insurance policies or programs to meet your needs.
3. Fair and act in your best interest
An insurance adviser will usually offer you objective advice that is in your best interest with respect to managing your risk and insurance requirements. It is worth noting that some insurance advisers only offer general advice, which does not consider your personal needs and circumstances. You should ask to make sure which advice you are receiving.
4. Helps clients understand insurance coverage and options
Before you decide on the insurance policy that you want to buy, your insurance adviser will go into detail, using their expertise to help you understand the benefits, costs and key exclusions of the policy wording, so you can decide on the policy, sums insured and excesses that suit you or your business.
5. Explain the cost of the policy
The cost of the policy includes any excesses that you may have to pay each claim or in total each year. So, the total cost of the insurance policy is the premium and excess. Your insurance adviser will explain the cost implications and make sure you’re aware, so there are no surprises.
6. Help with your claim
If you need to make a claim on the insurance policy and would like help to lodge a claim, your insurance adviser will discuss the cover and excesses, as well as any paperwork you will be required by the insurer to submit to support the claim. They can also act as your advocate, to ensure the best claim settlement.
Benefits of Hiring an Insurance Adviser
1. Help keep costs down
If you have a business, car or home, saving money is crucial, and a professional insurance adviser can help keep costs down while maintaining quality insurance coverage.
Unless you have the time each year to talk to at least three or four insurance companies and review the insurance policies, you are likely to pay out more for insurance coverage than you need to.
A professional insurance adviser deals with upwards of 200 different insurers and understands the key differences in each insurer's policy. Many of these insurers don’t deal with customers directly, so you could be missing out on quality cover and more competitive premiums.
An insurance adviser acts in your best interests and will give you information on the best options for you or your business, so you can choose the type of policy suitable for your business.
2. Professional advice
It’s only natural that one of the benefits of working with a qualified insurance adviser is that they have the specialist industry knowledge and expertise in risk and insurance-related.
They will have up to the minute information and be on the pulse of any changes that might affect cover, premiums and and claims settlements.
So, whether you are wondering if your level of cover is sufficient, have questions concerning your premiums, or if you need to understand more about what exactly your policy covers, an experienced insurance adviser will be able to help.
3. Business and personal claims
For many businesses and individuals, a large fire or extreme weather loss or damage can be a deeply stressful and difficult time. Throughout this challenging time, an expert insurance adviser will be able to help you and provide invaluable support, by liaising and negotiating with assessors, adjustors, insurers claim teams or other insurance specialists So you can get back to running your business.
4. Assess risks effectively
Having the wrong type of insurance or not having the correct sum insured (being underinsured) is a problem for many businesses, and it is a nation-wide problem, according to a recent McKinsey Report.
An insurance adviser will be able to analyse your objectives, needs, financial situation and risk profile to develop appropriate strategies and solutions.
Insurance advisers’ expertise spreads across a range of industries. Therefore, they will be able to help and advise regardless of the type of business.
For more advice on how hiring the best insurance advisers can benefit your business, check out 5 Ways Insurance Protects Your Business.
As one of Australia's and New Zealand’s largest general insurance broking and risk advisory intermediaries, we have 250 practices helping people and all types of business with managing risk and purchasing insurance.
We are a member of the National Insurance Brokers Association and pride ourselves on our commitment to acting in accordance with the NIBA Code of Practice. If you are thinking about hiring a professional, licenced insurance and risk adviser for you or your business, get in touch with an insurance adviser nearest you.
This communication including any weblinks or attachments is for information purposes only. It is not a recommendation or opinion, your personal or individual objectives, financial situation or needs have not been taken into account. This communication is not intended to constitute personal advice.
We strongly recommend that you consider the suitability of this information, in respect of your own personal objectives, financial situation and needs before acting on it. This document is also not a Product Disclosure Statement (PDS) or a policy wording, nor is it a summary of a particular product’s features or terms of any insurance product. If you are interested in discussing this information or acquiring an insurance product, you should contact your insurance adviser to obtain and carefully consider any relevant PDS or policy wording before deciding whether to purchase any insurance product.