chap 11 client service Flashcards
client buying behavior
understanding client business vital to broker success for 2 reasons
- rate tarts/ personal lines ‘advertising tidal wave’
- 2 reasons * broker can build and deepen r.ship with client. * the more that is known about a risk the betterthe broking job that can be done
the benefits of a good business r.ship
- reduced costs
- better returns for the broker
- more cross selling
- better retention rates
- improved problem solving
- more referrals
defining excellent service
brokers client services
- advice on isurance and market developments
- detailed knowledge of markets and insurers
- negotiating with insurers
- checking and issing policies
- collecting and remitting premiums
- assisting in claims negotiations
the above are all hygeine factors
excellent client service
- obtain thorugh understanding of client business and sector
- be aware of developments in clients sector
- understand the clients buying and business style
- broker client relations and advice
- image - prof approach - positive public image
reasons for tobas
external influences
defintion of the r.ship
- necessary to document- rights obligations, remedies.
- feature of good governance - quality systems iso accreditation
- influence of procurement processes
- ## influence of fca - not required but best practice
client produced tobas-
especially large clients selected through the procurement process now use their own slas and contracts;
key features;
slas spell out what the broker will do, who will do it and when it will be done by
(kco’s - key client outcomes)
- control of intellectual property- generated by the broker - becomes property of the client
- indemnity clauses- to be given by the broker arising from performance of contract
3, insuring clauses- requiring broker to arrange el- pl insurance etc - compliance with employment and ethical standards
- exclusitivity - broker not allowed to undertake work of another client in a related business
- non disclosure agreements - confidentiality clauses
client obligations
balancing the brokers service obligations with the obligations of the client;
- delivery of info within an agreed timescale
- access to senior mngt, as required
- access to sites and information
- timeliness of critical decisions
the annual renewal cycle
- diary system for renewal prompts
- reminders
- annual service plan
- open items list or work in progress
- stewardship reports (mid term review of performance by the broker|)
- registers
- renewal reports
the challenge is to ensure how the above procedures are followed
- proprietary and bespoke it systems
- standard operating procedures (sops)
- regular audit
- adequate supervision
- monthly reporting at senior level - RAG
client satisfaction
benefits of monitoring it
- any probs client is having with broking service- allowing broker time to address them
- improved r.ship
- identify strenth and weakness across all clients
claims- EXPRESS regulation from ICOBS 8.3.
- broker is expected to comply with general law, applying to the duties of a general insurance intermediary
- broker must take the approperiate steps to avoid conflicts of interest, partic when acting for both client and insurer
- where broker has no authority to deal with a claim it must forward any claim to insurer proomptly and inform client immediately that it cannot deal with notification
* broker must also observe principles for business and tcf
also icobs does not apply to large risks but it expects brokers to act as if it does
claims services offered by brokers
* traditional full service role (no role at all)- claims notified and handled by broker who reports to insurer, collects claim and sends cheque to client - known as ‘post box service’
the consultancy or claims advocate role (notifed direct but the broker undertakes some ‘added value ‘ services examples;
the claims principla role- the broker takes full or partial responsibility for negotiating and settling claims under a delegated authority from either the client (where they are self insured) or the insurer
issues for claims handling authority
after comm received brker is always responsible for continuing obligation to handle claims even if they are notified long after the r.ship has ended; 2 main probs for brokers;
- managing the quality of insurer and adjustor claim services
- reviewing reserves and removing duplicated entries
- analysing claims data and providing reports
- providing detailed advice and consultancy on large complex claims
- providing bespoke or standardised claim recording and analysis software and systems
issues for claims handling auth; 2 main probs;
- broker has to build in the time to claim as an expense or overhead or agree with the client specific provision for these circumstances
- long tail claims up to 30 years (40 years for asbestos)- chester st- brokers gone bust, acquired or merged, such that records have been lost or destroyed
insurers - investigating heavily in the claims process
- loss remidiation contractors
- the making of early contact with 3rd parties to repair damaged vehicles, offer courtesy cars and make early arrangements for specialist medical care for injured parties
- arrangements with garages for courtesy cars
- networks of building contractors, lawyers and adjustors
- call centres that r equipped with the latest telecoms tech to deal quickly with FNOL
- approved vehicle repairers that are equipped with video inspection and insurer system access
- bulk purchase agreements with motor and component manufacturers and the supplies of white goods, furniture and jewlerry
for these reasons the insurer prefers the claim to be notified to them direct, not to mention liab claims protocols but exceptions tend to be;
prop claims for large insureds
el and pl claims where large clients arrange contact with specialist law firms and have their own processes for early intervention
own damage losses on large motor fleets
