• Why insurance is advice-driven, not price-driven

“It’s an enabler, not a panacea.”

That is how Shaun Standfield, managing director of Insurance Advisernet, sees the role of technology as it pertains to broker-client relationships.

For many brokers, the advent of the COVID-19 pandemic saw them quickly integrate new forms of technology into their daily workflows so that they could continue to work remotely. According to Standfield, Insurance Advisernet’s mobile workforce, “device-agnostic” systems and focus on SEO strategies meant that they were already a step ahead of their competitors.

Technology forms just one part of Insurance Advisernet’s tripartite business strategy, which also emphasizes professionalism and the provision of accurate advice. Standfield views these as qualities that help the company go beyond merely providing a product for its clients.

“If you’re a small business just starting out, you may opt to simply browse for and purchase insurance online as your assets aren’t necessarily worth all that much,” Standfield says. “As your business grows, however, you generally start to seek advice on what types of insurance you need and what’s best for your situation. This is where Insurance Advisernet really comes into play and adds value for our clients – by providing advice and support when they need it most.”

“Our own research shows that while price is important, it’s not the overarching factor in clients purchasing insurance from a broker,” he adds. “I strongly believe that insurance is an advice-driven industry and not a price-driven industry, and being able to access this advice is particularly important as businesses grow and develop new insurance needs throughout their life cycles.”

Insurance Advisernet’s focus on providing timely advice can be seen in a recent report the company sent out to clients regarding expected trends in general insurance premium pricing. According to the report, a hardening market may see insurance premiums rise and capacity cut. These expectations are, of course, subject to a number of influences such as industry and geographic location.

For businesses struggling during these times that may be tempted to cut certain forms of coverage to save costs, however, Standfield says that this short-term thinking can bring about unintended negative consequences.

“It’s more important than ever now to review your insurance program and to maintain, if not improve, your insurance covers,” he said. “The last thing we want to see during this time is a business incur a loss on something that was potentially insurable but wasn’t included in their coverages.”

 

 Insurance Business Australia



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