Why having a broker benefits clients

Clients who use a broker have better claims experience and outcomes, says report
Why having a broker benefits clients
INSURANCE NEWS
By Mina Martin
02 Jun 2018

A new Vero report has found that clients who use a broker have better claims experiences than those without.

Data from the Vero SME Index showed that 23% of broker clients are covered for 100% of their claim, compared to just 10% of direct buyers. Meanwhile, only 13% of broker users had less than half of their total claim covered, compared to 26% of direct insurance buyers.

David Hudson, internal account executive at Gallagher’s Parramatta branch, said the report highlights one major advantage to having a broker when dealing with insurance.

“Our service isn’t just a competitive quote, but if a claim does arise then we will hold your hand and walk you through that process with you from start to finish,” Hudson said. “We do have a dedicated, specialised claims team, but we ask them to keep us up to date with how a claim is progressing.”

The Vero report also found that 62% of broker users are satisfied with the claims experience, compared to 56% of direct buyers.

“Claims not only provide evidence of the value that brokers deliver, but also are a chance for brokers to demonstrate true expertise to their clients at a time when their insurance is being closely scrutinised,” Vero said. “Brokers have deep and relevant understanding of a wide range of claims scenarios and sharing this information can be of immense value to clients.”

Hudson said brokers help clients understand a policy and its wording at the time of purchase, which he said is key to ensuring that these clients know what they're covered for in the event of a claim.

“We all know insurance likes its jargon, which can make it confusing,” Hudson said. “We break it down into simple language for our clients. Part of that is giving claims stories and examples and showing clients why and what could happen to them.”

 

Related stories:
Could brokers do more on insurance cover?
Is this the final chapter for the personal lines broker?

 

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