With a large percentage of us looking at our insurance policies as a way of making savings in our household and business budgets, advertising pushing price in our face at every turn, its hard to walk away from anything but price.
Plenty of awards handed out for the best in this! and best for that! And they all appear in the hands of the direct marketers, boy do they like telling us about it. Advertising spin? Perhaps a little! Like most good movies, an element of truth with an exciting twist to get our attention.
The question everyone’s asking is what’s not to like about an insurer offering cheap premiums!
Over the last 20 years, having experienced first hand the growth of the direct Insurer in the UK and life at some of the largest General Insurers and Broker businesses in Australia I see that perhaps an easier question we should be asking ourselves is “what’s it going to cost me”? and looking further than the dollar equation. If your willing to scrutinise the policy on offer, understand insurance terminology, the jargon, definitions and how the policy will respond to you as a business or householder owner, then go for it.
But remember, it just doesn’t end by simply paying the invoice; dealing with claims can be a drawn out process, items to chase, follow up calls, the assessor that doesn’t turn up, and the endless time on hold with the Insurer, all whilst maintaining a balanced business and/or home life. If the truth be told it’s probably more ignorance with cost savings upfront coupled with the mere statistical calculation’s made in our head “it will never happen to me”!
If your unlucky enough to be involved in a claim; You ring your insurance company: after pressing 1. for payments, 2. for policy adjustments, 3. For new business quotes, 4. For claims and 5. to hear these options again. where you’re told by the person on the other end that the policy doesn’t cover you for the claim you wish to report.
Your Insurance company has declined your claim…………It happens too frequently!
At this stage you’re going to react in one of two ways, accept and move on or not accept, your going to have to make that call on your own, “I thought this was covered”
“I thought this meant” “I asked for this to be covered” are some of the questions you will be asking yourself; a process that can take several weeks for someone not industry savvy.
You pick up the policy booklet, blow off the dust and have a read, what are you looking for? You think you understand the meaning and interpretation? You contest the insurer’s decision but still they disagree; More anguish!
I call this The Collateral Damage Phase, so phrased because of the unintended damage that can be inflicted incidentally somewhere else on your business or home life.
Next step: Dispute resolution: Part one, the facts of your claim are reviewed by an internal impartial decision maker at the insurance company, hopefully someone will see things your way. Step Two after receiving your insurers decision via letter against your claim you are pointed in the direction of the Financial Ombudsman Service (FOS) an external arbitrator between you and the insurer. Do these Insurers Know us better than we know ourselves, perhaps so! Unknown to many the bare statistics show that 70% of all claims that end up on the desk at FOS (from their last report) come from the banking (48%) and general insurers (30%). it may appear that they have done their homework, they know how to read us and understand our buying decisions.
If you do go it alone and your willing to test your anguish and your sanity remember up front
“Education is what you get from reading the small print;
Experience is what you get from not reading it.”
Anonymous.
And for those that accept and move on, think twice, there’s experience and experienced, a different perspective always helps and better from outside the Insurer so If you need some help understanding Insurance talk to a broker.
