chap 4 meeting clients needs

Question 1

benefits are what clients want - features are what they need (feature organic - benefit - no poisonous material)

benefits- i have an accident on holiday i want medical cover- needs travel ins policy

more

Answer 1

i want cover if firm gets sued by member of public - PL
we want cover while
builders are working in our factory on an extension - needs - contractors all risk ins
i want cover for damage to my contents - material damage pol
** important for broker to ask question to discover what they want and actually need**
why is the si being increased- seasonal stock? have they bought additional premises.

important to explain the insurance, important to advise them on precise terms the insurer is offering cover- eg this policy excludes property stored in the open- broker advises - that means there is no cover for your garden or lawn mower if left outside

Question 2

demands and needs when recommendation made - suitabilty statement is determined by the circumstances of the customer and needs to record;

Answer 2

customers demands and needs, how the recommendation addresses the demands and needs, reasons for recommendation
suitability statement to ensure customer has made an informed choice

Question 3

written agreements with clients

Answer 3

1. reg info (info brokers required to provide) eg firms reg number, cooling off period, details of complaint procedures, availability of comp fscs
2. the brokers terms of business (toba) broker info, duration of contract,authority to act, payment terms, client money, conflicts of interest, limitation of liab, law
3. details of services broker is providing (sla
4. brokers remuneration

slas measuring service agreements via kpis

Question 4

service plan - timetable of key events during the yr

remuneration
broker can be paid by insurer (brokerage)
broker can be paid by client (fee by time basis) remuneration disclosure requirements

Answer 4

eg date task, by whom, purpose

remuneration disclosure requirements (before contract concluded) *broker not allowed to take a brokerage and a fee on an individ policy except if they have clients agreement)
must agree basis of remuneration of contract, eg brokerage or fee
client must be told how the fee will be calculated if figure not available
disclose any interest they may have in transaction
if remuneration by fee-should also clarify the period, whether the fee is in full, payment terms eg quarterly, installments, when the fee is ‘earned’