Their key role
Intermediaries play a key role in the insurance process.
For clients, intermediaries:
- identify the risks clients face;
- ensure that clients take informed decisions about the risks they wish to insure;
- design new and innovative solutions;
- reduce the clients’ search costs;
- put their knowledge at the service of the clients;
- assist their clients with claims related services and policy administration services.
For insurers, intermediaries:
- facilitate entry into the market by new insurance companies, as the latter can reach a wide client base without having to incur the costs of building a distribution network. This is important in terms of European Single Market development.
- intermediaries assist insurers with claims-related services and policy administration services.
How do intermediaries help clients in the choice of a particular insurance ?
Once the risks of the client are identified and the insurance needs are defined, 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 or insurer.
Apart from the price, these factors include, inter alia:
- the breadth of coverage available (capacity),
- 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 illustrates very well that price is not the only determining factor in the choice of insurance.
