Understanding applicability of possibilities

Momentum within the insurance industry has been brisk, as more people appreciate its need. Institutional and retail clients are realizing the importance of having to calculate risks, as several of them are continuously striving to look for the most appropriate partner in risk management. While most strive for the optimum service versus cost, there are key variables that are often missed out in the evaluation process, part of which includes assessment of insurable interests.

In managing 2Insureall.com, we are increasingly becoming aware that clients feel secure when they have an insurance policy in their hands. This perception stems from the fact that whatever perils that might befall them, they would automatically be indemnified once a claim arises. While this is presumably correct, brokerages or intermediaries are there only up to a certain extent. When a claim arises, insurance companies go through rigorous claims processing, and intermediaries or brokerages are there to ensure these are processed accordingly. Such “policing” exercise makes intermediaries different from the rest, especially in a way that would make it more convenient to clients in following up their claims. While this is the industry norm, note that the applied claim must fall within the applied coverage. Bottlenecks arise as a result, if such a claim is not covered within the policy.

In 2Insureall, we aim to continuously improve our services by participating from the start to the completion of a policy. We assess clients’ insurable interest as thoroughly as we can, and discussions follow thereafter. 2Insureall has marketing officers who explain the advantages and disadvantages of coverage presented against premiums, before providing our recommendation through formal proposals. As soon as this cycle is completed, we allow our clients to decide and select the best option that would fit their budget and so-called “risk comfort” requirements. To cite a couple of examples: for motorcar, it is evident that coverage and premiums are very easy to understand, otherwise there are special coverages that need to be applied such as accessories or acts of god, which is a coverage related to calamities. We ask clients if they need these arrangements depending on their main lifestyle and risk requirements. On the other hand, fire insurance is more tedious where as intermediary, property surveys are made to ensure the best packages and inclusions are advised for a fitting insurance coverage. By properly disseminating details, clients get peace of mind, knowing what they are covered for against those that are not.

To be an effective intermediary and build long-lasting relationships with clients, one needs to thoroughly know the core elements and specific nature of a customer’s need. Selection is easy once these expectations are adequately matched with a client’s paying capacity. Intermediaries or brokerages are there to make sure clients get the most out of their investment in a security, and by making them understand the process. While uncertainties cannot be exactly calculated, preparing for the inevitables can be facilitated by understanding the probable risks.

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JP Enriquez is the operations manager of Yapster e-Insurance Brokers Inc. For comments or queries, e-mail him [email protected].