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‘Brokers need to better understand the product'

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Insurance Business | 04 Jul 2012, 12:05 AM Agree 0
As another broker is now forced to pay out on an insurance policy after they offered botched advice, brokers are being warned to ensure they better understand the products they are offering.
  • Paul Murphy | 04 Jul 2012, 12:40 PM Agree 0
    The issue is always price until the claim occurs!Brokers especially SME brokers are under tremendous pressure to push through renewals and invoice clients. With benchmarks by Macquarie Bank and others saying profits should be at least 25% of commissions and fees, the pressure to take short cuts is immense. Having been an expert witness in two matters before the NSW Supreme Court,none of the usual excuses cut any ice.My personal view is that Professional Indemnity claims will escalate unless broker executives rediscover the fundamental purpose of broking: now thay client!
  • Robert Fleming | 11 Jul 2012, 03:26 PM Agree 0
    Compeletly agree with your sentiments Paul. I think that alot of the problems that brokers have is that unrealistic workloads are placed onto indivduals. These workloads also require a 'different hat'to be worn by the indivdual. Until the insurance industry starts adopting a more linear structure (along the lines of the fin planning industry i.e. fin planners, para planners, assistants) then I can see the claims continuing.
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