Great outcomes start with a conversation.
All too often, insurance brokers make assumptions about your business before they’ve even met you. Starting with preconceived ideas of your risks and needs, they ask standard questions and recommend a standard list of insurers. But unless your broker really understands you and your business, it’s unlikely you’ve secured the best possible solution.
When renewing your policy or considering alternative brokers, the conversation should not start with insurance and policy covers.
Your broker must fully understand your business and the protection you need. They should give a clear idea of what they expect from you, and what you should expect from them to achieve the best outcome. They need to ask the right questions — and so do you.
What questions should my broker ask me?
it‘s all about having robust conversations and learning as much as possible. Your broker should probe and listen; not just talk. They should identify your business priorities and key risks, and be proactive in amending your insurance in response to your changing needs.
They should prepare quality information and present your risk in a favourable light to the insurance marketplace to achieve the best outcome. Your broker should ask:
- What are your aspirations, objectives, forecasts, growth aspirations, new revenue streams, and supply chain risks?
- How has your business changed, and how will it change in the future? ‘
- What is your ownership structure and how will that change over time?
- What are your financial KPls?
- What are your risks and issues around assets, liabilities and people, and how are you managing them?
- How much risk are you willing to tolerate on your balance sheet?
- Could we use insurance to gain a competitive advantage for your business?
What questions should I ask my broker?
Renewal conversations are the perfect opportunity to test your broker‘s technical competence and industry knowledge.
Don’t be reluctant to challenge your broker, and don’t be offended if your broker challenges you.
It’s all part of exploring your tolerance for risk and understanding where there are exposures that you are not comfortable with. Good questions to ask your broker:
- What’s happening in the insurance marketplace?
- What changes and trends are happening in my industry?
- What are insurers saying about rates?
- What can I expect around premiums, for budgeting purposes?
- What are the key risks (and emerging risks) that might impact business goals?
What feedback should I provide?
Honest feedback helps you achieve better value from your broker relationship. Before the meeting, ask yourself:
- How has my current broker performed?
- Are they meeting my expectations?
- What do l value in the relationship?
- Am I happy with an annual visit, monthly updates, or just the odd phone call?
Your broker should give you the opportunity to provide feedback, not just at renewal but throughout the year.
It’s all about selling your risk to the insurance marketplace.
There’s a lot to think about, and that’s where a great broker can help. Properly prepared, robust conversations with your broker are vital for achieving the best possible insurance outcomes.
By asking and answering the right questions, you can secure the right balance of protection that enables your business to confidently trade, grow, and recover in the event of a loss.
How can I ensure the recommended insurance solution is right for my business?
To really figure out if your insurance house is in order, make sure your broker can answer the following questions:
- Are the policy wordings in this contract designed specifically for my business?
- What insurable risks do my policy wordings cover?
- What has been the process for establishing cover limits?
- Were any scenarios run to validate these cover limits?
- How do my policies reflect my financial tolerance (appetite) for risk?
- Is the deductible structure aligned with my business’s risk tolerance?
- How have you arrived at the deductible?