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Direct insurer: ‘Asking questions is bad for business’

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Insurance Business | 13 Nov 2012, 12:05 AM Agree 0
A direct insurer has claimed “customers would buy insurance elsewhere if asked too many questions”. It also admitted this leaves customers footing larger insurance bills due to their desire to get off the phone…
  • Tony | 13 Nov 2012, 11:22 AM Agree 0
    I think this clearly demonstrates why dealing with a broker is imperative, particularly in relation to Commercial Insurance.

    The McDonalds approach to "fast insurance" can only go so far.
  • Robert Cooper | 13 Nov 2012, 12:43 PM Agree 0
    There are some valid points to this, but then Youi actively promote that they ask alot more questions to reduce prices. So who is right
  • Gary Everdell | 13 Nov 2012, 12:45 PM Agree 0
    Just one of the reasons why a discussion which is offered to any Press , can lead along an unknown path. I'd like to see the full transcript of the interview mentioned as we may only be getting abbreviated bits of the actaul conversation. Either way , I'm confident the "fact find" I use to establish client needs is reasonably robust - then its a case of probing for more clarity on an as needs basis as no two busienss operations are exactly the same once you move away from generic "retail"
  • Tony | 13 Nov 2012, 04:54 PM Agree 0
    @ Robert Cooper, you do raise an interesting point however I would suggest all would be lost if someone tried to engage such insurers on technical points e.g. completed operations on works contracts, the importance of reinstatemnts on PI contracts, the necessity for AICOW on ISR contracts etc. I really do believe these direct companies should be restricted to retail products only.
  • Robert Cooper | 14 Nov 2012, 11:37 AM Agree 0
    Tony, I agree. It would be good if direct insurers were restricted only to retail products because they naturally take short cuts to reduce cost of business. But it is the free enterprise system and it is up to us to be innovative and promote our profession more.
  • Scott | 14 Nov 2012, 12:18 PM Agree 0
    I'd like to ask Insurers - such as Vero, why then does their Home and Motor quote system for Brokers ask so many questions? How is it acceptable for their Direct Channels (AAMI & GIO)to quote and create policies with a small fraction of the information Brokers are made to supply?
  • Tony | 14 Nov 2012, 12:42 PM Agree 0
    Ah yes Robert, "free enterprise", you are of course quite right. In this instance, the price of "free" is quantifiable by the strength of the advice in the business transaction.
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