In September 2020, Deloitte Access Economics released a report outlining the value provided by insurance brokers. The report highlighted that brokers supporting clients throughout the claims process can lead to better outcomes for clients.
The conclusion was unsurprising for insurance practitioners who understand the role of a broker in the claim process, which includes:
1. Time Savings for Clients
The report found that 41% of SME clients would have felt that the claims process was ‘much harder’ without a broker’s support. Clients also noted brokers’ support in managing communications throughout the repair process, including arranging quotes and schedule works in a manner that required limited engagement for the client. This allowed the business owner to focus on returning to trading as efficiently as possible.
2. Broker’s Advocacy
The broker’s primary role is to support clients through the process. Brokers are familiar will the insurers’ processes to lodge claims and handle communications. They can assist with completing claim forms, if required, guiding the client in the right direction, and collating the necessary documents and information required to support the claim. The broker will normally have a strong relationship with the insurer, allowing them leverage when managing tricky claims and often achieving better claim solutions for their clients.
Your broker is the expert and, in most cases, the broker’s knowledge and expertise are superior to that of the staff who work in insurers’ claims departments. Clients also value a brokers’ emotional support during the claims process.
3. More Favourable Claims Payout
A favourable claims outcome for a client may reflect their broker’s ablity to tailor products at the product purchase stage. Insurers agree with the proposition that clients who engage brokers in the claims process tend to receive higher claims payouts.
Deloitte’s report found brokers’ clients are more than twice as likely to be fully covered for their claims and broker users had a higher amount of loss covered, with 87% of broker users covered more than half of their claim, as compared with 75% of direct buyers.