Why going direct may not be the right course of action!
You’re probably thinking, “I am a direct sort of a person, I say what I feel and don’t beat around the bush and should I encounter a problem with a company I will keep going until I get it sorted, even if that means going to the top to get the matter resolved”. However there are times when you really need to assess as to whether going direct is the best course of action for you. Insurance is one of those areas where going direct is not for everyone.
Our television, radio and print media has a field day with the marketing budget spent by direct market insurers. There is nothing wrong with insurers marketing direct it’s all a matter of horses for courses. However as with everything ‘There’s always a price, no matter what’.
The role of a broker is to establish and present the best possible insurance solution for their client…you. A broker represents you, not the insurance company, and acts on your behalf with the insurance company. They have the formal qualifications, training and understanding of the insurance world so that they can guide you through it answering any and all questions you have about how best to cover your insurance needs. They also have the ability to specifically cater for special requirement(s) and or circumstances that you may inadvertently be exposed to without adequate protection or none at all. It is important to appreciate that these comments are generalised however they are very pertinent to all clients whether they be insuring their home, car, business assets or legal liability.
Buying direct from the insurer is restrictive as all the direct market insurers will only sell you what they are able to. In other words ‘take it or leave it’. This is not the case with a broker as they will have a host of insurance companies who they are able to deal with and can locate and present the product which best suits your needs. There are a number of insurers who choose not to deal direct with the public and will only deal through insurance brokers. This is why it doesn’t always pay to go direct as you may very well be selling yourself short on the best possible product for you.
Your broker is also there for you when things go wrong and will assist you with lodging a claim from start to finish, even resolving disputes along the way should they arise. They will also be able to provide interpretation of your policy wording and answer any questions you have. Now that’s reassuring. It is also comforting to know that you are able to speak directly to your broker, every time, and not whatever random call centre operator to whom your call is directed. It is important to have the choice to build a relationship with the person you have chosen to involve in your insurance because essentially, they are working with you to help keep your assets/livelihood safe.
Please do not be mislead, within our profession we do need to work along-side the insurance companies and it is the insurer who pays our claims. Without them we would not have a product to sell. The simple fact is that relationships are very important and whichever way you decide to go, whether it is direct or through a broker, you need to ensure that you are comfortable with your decision.
Remember “With insurance you only get one chance before the event so we need to make sure we have it right”