The bittersweet experience of discovering a claim
During a road-show last year I had several advisers report to me claims they had discovered through their work with a client. If you are a struggling new adviser, hungry for a sale, a discovered claim can be a bittersweet moment. But the experience has real value and keeps on paying dividends.
Monday, January 28th 2013, 6:00AM
by Russell Hutchinson
Here are three quick examples with some details changed or omitted to preserve client confidentiality:
The first was a head injury. Discovered when the adviser approached a client about taking up Trauma cover. The client was interested in the cover, which might have been because they had some “mortgage insurance stuff” which they had bought from the bank.
The adviser asked for a copy of the policy document and took the client through the application process for the new cover. During the application the client disclosed that they had suffered serious head injuries and had some on-going problems arising from that.
A little disheartened at the receding likelihood of closing the sale, the adviser checked the existing policy to see if a claim was possible. He felt that it was.
About two months later the client received a substantial cheque.
The second case was cancer. The situation was a review.
Although often referred to as ‘annual reviews’ in practice most insurance clients aren’t seen annually, and reviews may sometimes be an ad hoc affair.
In the road-show we had been talking about the importance of clarity in your service: making sure the client knows what you do in your reviews.
Do you check cover levels? Do you compare policy terms to see if they remain appropriate and competitive? Do you check to see if a claimable event has occurred? In this case the adviser asked the routine question: “have you had any medical problems since we last met?” Sure enough the client said they had “a little thing cut out.” It actually wasn’t that little – and a payment was in order - only discovered by diligent advice work.
Lastly, a husband and wife team in small business were working together. They were both paid a salary from the business and the wife suffered an injury which would keep her off work. Not to worry – small businesses cover each other and look after each other – but their insurance adviser told them to make a claim for lost income with ACC.
In this case they were eligible for help.
Review services should be clearly defined, and one of the best things to put into review services is a check for potential claims.
That check applies not just to your existing clients, but also clients you are reviewing for the first time.
Discovered claims often mean that no sale can be made – but the gratitude of the client can create a steady trickle of referrals for years to come.
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