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Insurance Business | 23 May 2013, 12:00 AM Agree 0
In just a few weeks, brokers will no longer be allowed to move clients to a new policy or insurer if it does not benefit the client. How can you stay on the right side of the law?
  • NFI | 23 May 2013, 11:43 AM Agree 0
    "Brokers have to understand what their client is trying to achieve when buying insurance and put it at the top of their list of priorities. rather than just explaining the available insurance products".

    Isn't this what we try to do anyway?? Bearing in mind, a lot of SME's (who this is trying to protect) will listen to all the advice in the world, then usually buy on price.

    Maybe it would be better if legislation was put in place where policies were explained and compared and the insured made the decision with their broker BEFORE knowing what the cost would be... get the $$ out of the equation - I can see that happening....
  • Paul | 23 May 2013, 11:50 AM Agree 0
    Once again the absurdity of Insurance Brokers being lumped in with other Financial Services providers is apparent. We are still living with the consequences of the Wallis Inquiry which devoted a few pages to General Insurance and ASIC being swamped with AFSL applications. With a new government in September perhaps Joe Hockey can undo some of the unintended consequences of FSR. He should understand a reform is not a reform unless it benefits the final customer.
  • Bob Hann | 23 May 2013, 11:58 AM Agree 0
    One of the major factors determining our placements is claims service and on many occasions, clients have accepted our advice to pay higher premiums to ensure prompt, efficient claims resolution - in the transport industry this equates to less down-time and improved bottom line - How would FoFA respond to that advice ?
  • David Cahill | 23 May 2013, 12:00 PM Agree 0
    Sounds like some one trying to justify there job here. Lets make a law that shows that we are actually doing something. Who is ever going to police it? and the majority of brokers don't move policies if their isn't a benefit anyway.
  • Kay Jackson | 23 May 2013, 12:16 PM Agree 0
    Wouldn't it be great if they made Direct insurers know what the cover difference is before they can sell their shitty cheap products to a client - this is where the complaints come from so why not regulate the Direct Market and leave the professional brokers alone
  • Leeanne Farmer | 23 May 2013, 01:25 PM Agree 0
    As a professional broker I would think that we are at present doing just that, acting in the best interest of our clients, we now just have a new documented duty to uphold. Don't focus on price, as it is not always a benefit to the client, "Price is an issue in the absence of Value", and as professional brokers we do show our true value to our clients.
  • Kate Fairley | 23 May 2013, 03:07 PM Agree 0
    I got an email from Flybuys this morning offering a 'little red quote', I had to click three buttons to get to the PDS so I could actually have a read, and still on the page where I could get a PDS the link was in smaller writing UNDER a larger 'Quick Quote' button.

    Did you know their ROD benefit is only 5%? There's also a blanket exclusion on any part of the building that's being renovated under the definition of 'what is a building'. Then there's the $1,000 limit not just on jewellery but also on computers and medical equipment such as wheelchairs and hearing aids.

    This is ridiculous imposing a duty that brokers are already bound by under their fiduciary obligations. Regulatory bodies should instead spend their time forcing direct insurers to outline the detriment suffered by saving 10% on your home & contents insurance.
  • MARTIN | 24 May 2013, 05:23 PM Agree 0
    A Broker is not going to recommend a change of Policy to another underwriter (any left?) for no valid reason. Bob Hann is spot on in that Brokers have to consider their clients needs AS WELL as the processes needed to fulfil those needs and it is claim situations that tests the Brokers mettle in expediency and ease of settlement.
    After 37 years of Broking my best clients are ones that have claims settled and take recommendations without hesitation . This is our job to look after the client as it is their and our own interest and no rules and regulations and justification to change insurers by some regulator will ever change my approach to a clients determined needs.

    Well done Kate Fairley for being intuitive and Leeanne Farmer for stating we all do that as Professionals , thats our job I thought ?

    Mw
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