How do intermediaries help clients in the choice of a particular insurance ?

 

There are a number of factors determining the recommendation that intermediaries make to their clients when advising them on the choice of a particular insurance (these factors should also be considered by the client himself). These factors include, besides the price, inter alia, the breadth of coverage available, the insurer’s flexibility in agreeing coverage, the insurer’s image and reputation, especially in respect of claims service (speed, fairness of settlements, additional benefits to claimants), the insurer’s financial security, the quality and clarity of documentation provided, the insurer’s speed in issuing documentation or in quoting terms, timeliness in inviting renewal, the technical competence of the insurer’s staff, the quality and availability of advice provided to policyholders, the quality of the other services provided by the insurer, his locational proximity. This aspect is reflected in the IMD and, more particularly, in the IMD information requirements. The IMD lays down precise rules on disclosure and the advice to be given by intermediaries enabling customers to make the right choices. These rules were established after years of debate and consultation with all parties in the market.  They take into consideration the fact that, in some segments of the business insurance market, intermediaries are in competition with alternative forms of distribution (banks, direct writers…). It would be discriminatory for an intermediary active in segments with strong competition from other distribution channels, and potentially misleading for the client, if this intermediary, very often a small SME, would have to disclose his remuneration and a direct writer (often large company) would not have to disclose his (acquisition) costs to the client. This system is the best guarantee for comparability by the client.