Are You Evaluating the Quality of Your Protection Business?
It’s essential to review the quality of the protection policies you place with providers. All insurers can report on quality metrics that showcase the consistency of the protection you offer. These metrics cover key areas such as non-disclosure, CYD return rate, lapse rate, and more. By focusing on these areas, you can identify potential concerns and enhance the quality of your protection business, ultimately achieving the best outcomes for your customers.
Non-Disclosure: Understanding the Impact
It’s a common misconception that many consumers believe that policies often don’t pay out, when in reality, the majority do. Non-disclosure is a significant issue—if a client doesn’t have the correct coverage and a claim is denied, it can lead to a challenging time for them and harm both your reputation and that of the provider.
Key Areas to Review
If you notice a high rate of policy cancellations in the early stages, it might indicate underlying issues. Ask yourself: Did my client fully understand the policies they purchased? Do they also understand the additional value-added benefits they have access to in addition to their cover? Were the policies suitable for their needs? To avoid poor client outcomes due to unpaid claims, engage in meaningful conversations with your clients to ensure they comprehend their coverage.
Confirm Your Details (CYD)
Clients may sometimes not disclose aspects like smoking, drinking habits or maybe have not provided all the correct details. It’s crucial to encourage them to carefully review their CYD from the provider and ensure that all information is accurate. This step is vital for maintaining the integrity of their coverage and peace of mind future claims will pay out.
How Can You Enhance Your Protection Service?
- Understand Client Needs: Take the time to thoroughly understand your clients’ needs.
- Provide Options: Present your clients with options tailored to their needs, emphasising value over price, and checking their understanding.
- Encourage Informed Decisions: Give your clients time to make informed decisions about their coverage and the opportunity to ask any questions.
- Highlight Misrepresentation Risks: Educate your clients on the importance of accurate disclosure to prevent claim issues.
Reach out to our protection providers today to understand the quality of your protection business.
By collaborating with providers to review your business scores and addressing any areas of concern, you can make positive improvements and ensure the best outcomes for your clients’ policies and the quality of your business.
