Governance
Private Medical Insurance brokers deliver value |
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| Governance | |
| Written by Alistair Sclare, Director of Healthcare at Groupama Healthcare | |
| Monday, 19 July 2010 | |
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An independent broker who works solely on behalf of the client can offer real value.
When times are tight, value is king. That does not necessarily mean tracking down and securing the cheapest alternative, and then simply repeating the process at each annual renewal. Value, in insurance terms, combines competitive pricing and high quality. There’s little point in effecting a cheap option if it fails to deliver the cover and service required. Indeed, anyone with an internet connection and sufficient patience can trawl the market for a low cost deal. But it takes experience, knowledge and connections to identify exactly the right policy that really meets the needs and specifications of a particular business. Cue the specialist broker. PMI for businesses does not lend itself to online purchasing in the same way as personal insurances such as household or private motor cover. And while certain low value covers such as commercial vehicle can be happily transacted and maintained online, the same is not true for a policy that is as complex and sensitive as medical insurance. So while it might be tempting to trust Professor Google to find the best deal, it really does make more sense to employ a professional. A good broker will assess an organisation’s specific needs and work out the kind of cover it requires, resulting in the business only purchasing the cover it requires and obtaining better value in the process. It is also the case that brokers have access to insurers who do not sell direct to consumers, thus broadening the field for their clients. Choice is another key component of the value equation. But the broker is not there just to help secure the right policy from the right provider. The broker’s job is year-round, ensuring any adjustments to the policy are put in place swiftly and smoothly and maintaining communications with the insurer so that claims are handled fairly and with the minimum fuss. Insurance can be scary if you don’t know what’s what. Surely it makes sense to have an expert on your side when you are dealing with an insurance company? And a good broker will be in for the long haul, reviewing the performance of the “holding” insurer and assessing what the rest of the market has to offer, the sole motivation being to provide the client with the best value at all times. Many insurance buyers have taken against the broker option because they see the additional link in the chain as increasing the administrative burden as well as the cost – isn’t the broker simply another mouth to feed? But the broker’s role is to enhance efficiency by acting as a filter – dealing with day-to-day to matters and tackling significant issues as and when they arise. And keen negotiating skills should ensure the broker delivers a highly tailored product to the client that offers substantial added value over the best the internet might have to offer. Firms buy PMI insurance to reward and motivate staff and to maintain the smooth running of the business by ensuring people who are ill get prompt treatment. It is, therefore, something to which great importance is attached. As such, it warrants specialist care and attention, and shouldn’t be treated as a mere commodity where the only important element is the price. By utilising an independent broker who works solely on behalf of the client, a firm has the very best chance to lock in high quality cover at a fair, justifiable price. That is the definition of value.
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