Chapter 5 Marketing and the role of intermediaries and insurers Flashcards
What are the two main types of distribution channels?
Direct
Independent intermediaries
Identify 9 advantages of an insurers selling direct
Control Increased business volume Ability to cross sell Profiling of data Ownership of customer Differentiation Training and quality Expertise Control of business levels
Identify six disadvantages of a direct marketing approach
Potential over selling Lack of choice Expertise Costs Lack of competitive challenge Infrastructure costs
What is worksite marketing?
Where insurers promote their products directly to employees
Via intranet. Individual meetings. group meetings
workshops and financial clinics
Why is social media a growing method of customer communication
Reinforces brand
Allows unhappy customers to vent
How are brokers remunerated
By commission initial higher thenlower on renewal
How are IFAs involved in PMI
Independent financial advisers sell PMI along side investment products eg life insurance and pensions
What do employee benefits consultants do?
Advise companies on group schemes remunerated by fee or commission
Range of services including claims monitoring,product design, negotiation with insurers, thirdparty administration, third party services,negotiations with hospitals, administration andpayroll systems
What are seven advantages of intermediated sales
Impartial advice
Unbiased full market review
Consultative rather than price driven approach
Analytical advice
Value added services
Lower acquisition costs
Intermediary sales accurate barometer o fcompetitive ness of insurer product
What are seven disadvantages of intermediated sales
Focus on company paid SME or large corporatemarkets
Some of propagated churning
Inappropriate advice as no formal or industrystandard qualification
Consolidation has reduced no. of intermediaries
Who is the AMII
Association of Medical Insurers and Intermediaries (AMII)
Identify three purposes of a fact find
Gather underwriting information
Determine customer’s demands and needs
Assist with risk assessment
Four aspects covered under individual fact find
Personal details
Existing insurance
Personal healthcare requirements
Existing medical conditions
Five aspects cover under a corporate fact find
Company profile Current scheme profile Claims profile Benefit requirements Proposed membership
Identify three responsibilities of the PMI provider
Ensure cover and terms are precise
Provide treatment meets customer expectations
Control premium costs by controlling claims costs
Under what Act must an onerous term be drawn to the consumers attention
Consumer Rights Act 2015
Identify six pieces of information required when undertaking an individual risk assessment.
Age Existing medical conditions Current health Occupation Geographical location Marital status Exposure to congenital risks Lifestyle
Identify 12 pieces of information required when assessing the risk of an SME Group policy
No. of employees Dependant cover? Age profile Occupational profile Selection profile Funding Medical underwriting method chosen Cover requirements Excess or co payment requirements Hospital access required Overseas cover required Specific legislation;ative requirements Duty of care requirements
In what ways will the assessment of a large corporate scheme differ from SME
More specific on funding eg? All insurance or risk share Stop loss requirements Flexible benefits required? Trust arrangement Co-insurance? Self funding?
Identify 16 items that a quotation must achieve
Be appropriate to risk and cover required
Clearly define cost in relation to cover
Identify administration costs of corporate scheme
Identify IPT
Identify relativities for single/couple/family membership
Identify any hospital scale
Identify any excess or co payment
Explain age breakdowns
Explain underwriting discount and surcharges
Explain excess and co-insurance discounts
Identify risk share parameters
State eligibility terms
State expiry time for quotation
Identify contribution options for group scheme leavers
Explain transfer criteria and declaration requirements
Identify if includes or excludes commission
Identify 8 areas where PMI policies need to be clear
How are chronic conditions defined What cover is provided for cancer eg limits, drugs that will be paid for, hospice care? Extent of pregnancy cover Extent of psychiatric cover Hospital networks Consultant eligibility/preferred provider list Surcharges for medical underwriting Impact of non disclosure
Identify 8 aspects of PMI claims administration
Helplines Pre-authorisation Speed of settlement Electronic payments Claims management information Application of excess or co-payment Payment statements Shortfalls Declinatures
Identify 6 aspects of data membership management administration
Mid term movements (changes in cover or thosecovered during year
Elgibility
Employee lists
Online access
Data Protection Act 2018 protection
Membership reconciliation for large corporates
Identify 7 aspects pf premium/invoicing administration
Direct debit notification Clear and concise invoices Mid term adjustments Credit and debit notes Financial statements Commission statements P11D statements (detail employee's benefits andexpenses(
Identify 11 types of policy documentation produced by insurers
Fulfilment literature PDFs Advice notes Quotation confirmation Membership certificates Benefit schedules Hospital lists Member booklets/handbooks Terms and conditions Fact sheets Online information
How are premiums calculated for the renewal of a group insurance scheme?
Based on incurred/paid claims
Average membership used to calculate average claim profiles
Estimates of future inflation included in calculation
Identify five aspects covered by the Insurance Distribution Directive 2018
Professionalism Commission disclosure Harmonisation New product governance requirements Ancillary insurance intermediaries
Under the Insurance Distribution Directive 2018 what is the mandatory number of CPD hours required?
15
