Answer: The clients can indeed find a fair price given they have qualified internal specialist in charge of the insurance issues and/or their financial department has a significant experience in finding the best possible insurance coverage which is really a rare case.
Moreover, in case of the insured event, especially a substantial one, the clients tend to perform a lot of actions, including those of legal nature, which, nonetheless, are of little use in terms of speeding up the process of getting the indemnification due to the lack of the necessary experience and particular knowledge. Under our own estimates – the quantity of claim refusals without broker’s involvement could have totaled up to 90% in property insurance and 70% in motor vehicle insurance.
Answer: We believe that the insurance rates received with the help of a broker cannot exceed those offered by the insurer directly to the insured. Our clients work with us because we can offer them the adequate insurance coverage at the price which is lower than the one they can find themselves. The expenses for an intermediary, i.e. an insurance agent, or the sales department specialist are always included in the insurance premium.
Answer: BritMark is guided by three basic criteria when choosing the insurance company to work with:
If at least one of the abovementioned criteria is not met, our co-operation with the insurance company is impossible. Besides, the current market situation proves that each criterion can change within one month.
Answer: The crisis has not eliminated the issue of dumping from the market of corporate insurance products. In some cases it is even reasonable for the client. For instance, dumping offers are in demand for the property insurance policies required by the bank, which imply naming the later as the beneficiary.
On the other hand, in case of an insured event, any client wants to be indemnified fully regardless of a criteria that defined his choice of the insurance company. Even if the insurance company is not in able to pay the indemnification, the client still remains the debtor in accordance with the credit agreement.
As for the service products, such as corporate medical insurance, dumping may be effective in the short run. However the Insured who has already experienced the product, understands that it is not worth being tempted by the low prices. The time when the clients were choosing the cheapest insurance companies has passed.
Of course, BritMark would prefer to offer our clients the most expensive and, at the same time, the most reliable insurance coverage, but the so called “anti-crisis” budgets don’t allow that. That is the reason why the clients choose a reasonable level at a medium price.
The global western companies choose the Insurer based on the reliability of its parent company and the international ratings which, unfortunately, is not applicable to Ukrainian market. There are always a few insurance companies in Ukraine which use the aggressive strategy of dumping for winning the market share. This kind of behavior is always unprofitable when it comes to voluntary health insurance and is possible only if the shareholders can allow significant investments. Such companies provide the clients with a high level of service which tends to fall as the portfolio of their clients grows. Thus, the client is left with the following choice: either to work with a medium-priced but fairly reliable company, or save some money but then monitor the condition of the service provider closely and promptly react to any disturbing signs which may appear.
By using the services of an insurance broker the client can allow himself to go with the dumping offer but still be confident that the broker will terminate the insurance agreement with a questionable insurance company and will be able to influence the indemnity payout thanks to its bulk portfolio.
Answer: An insurance broker recommends the client to start working with another insurance company instead of the current one in cases when the recent experience of co-operation with a particular insurer proves the broker that it is now dangerous to place the risks with it. Given the crisis, nowadays there are no absolutely reliable or absolutely unreliable insurance companies. In 2009 we witnessed cases when the pricing strategy of an insurer, as well as its indemnity policy, could radically change within 12 months. Insurance companies are mostly sensitive to changes in top management or ownership structure.
Answer: Before making a decision it is necessary to understand whether the manager’s choice of particular insurance company is because the bank lobbies for it or he just doesn’t possess the most recent information regarding the current agreements the bank has with other insurance companies. In the first case, the client has no choice, but to go with the insurer recommended by the bank, but try receiving the best possible prices.
In the second case, the client with the help of an insurance broker can receive an actual list of insurance companies accredited at the bank and choose the one at his discretion. The thing is that the broker receives the information regarding the accreditation from the insurance companies themselves instead of requesting it from the bank.
Our clients, partners and journalists ask us different questions regarding insurance broker’s nature of business on the everyday basis. We would like to anticipate your inquiries by providing the list of the most frequently asked questions along with our answers to them.