Adulting requires a person to have a robust financial plan to sustain themselves in case of a life emergency that needs immediate financial back-up. Having insurance cover forms part of that responsibility.
Hence, head of distribution at PSG Insure Karen Rimmer, explained that maintaining a trustworthy client and insurance advisor rapport helps an individual take informed decisions on insurance plans.
“Advisors can provide invaluable foresight into new and emerging risks and help their clients make informed decisions. Clients should see their advisors as partners in personal and business matters. Building a foundation with your advisor based on trust and transparency is not only important in times of need but also in general, as your lifestyle changes or your business evolves.
“The more time advisors and clients spend together, the better both will understand the client’s unique needs and how their risk profile changes over time. This ongoing relationship allows for proactive adjustments and risk mitigation strategies that can ensure optimal coverage as well as a healthy degree of preparedness,” said Rimmer.
To negate clients from taking uninformed insurance plans, Rimmer relayed the benefits of building a healthy rapport with insurance advisors.
Esteemed advisors solemnly render insurance services by conducting a client profile in order to cover the right insurance product, which is inclusive of the client’s budgetary limitations and long-term financial goals.
“Beyond providing their clients with recommendations on which insurance cover will best meet those needs, they also play a key role in helping clients understand the type of insurance they purchase.
“As an insurance expert, your advisor should also be able to recommend ways in which you can protect your assets and valuables and will also ensure you have the right risk mitigation strategies in place. In the long run, this important advice can save you time and money and provide you with a further degree of peace of mind, beyond the assurance that having a policy provides,” said Rimmer.
Insurance advisors play a significant role as risk management experts, which is quite imperative and common for businesses. Here, they extrapolate possible risk factors that may affect a certain insurance product, such as crime rate in specific areas, the markets and geographical location.
“Advisors are also experts on risk analysis. In both a personal and professional capacity, people and their businesses are faced with a unique set of risks. Personal and commercial cover take these unique factors into account, which is where an advisor comes in,” she said.
Rimmer said an advisor’s experience and credibility layers them to predict incidents that may financially knock a client, thus ensuring a customer is covered with the right insurance cover.
“Over and above their valuable perspective on specific insurers, risks, insurance advisors can also provide recommendations to assist their clients in making informed decisions that could have a significant impact in future.”
Giving a practical example, Rimmer said: “In the case of a Body Corporate, the advisor insisted that a valuation be done, which the client initially resisted. Ultimately, the client agreed, and the valuation was conducted. Shortly thereafter, the client had a building claim, which was paid in full because the client had taken out adequate cover based on the latest valuation.
“Had the client been underinsured when the claim arose, the claim may have been rejected or only partially paid. In this instance, the advisor was able to help the client prevent incurring a substantial and untimely financial loss.
“These and other similar examples continue to demonstrate that advisors play an important role in helping clients understand their policies and match their unique needs to the right type of insurance cover.”
The Star
hope.mafu@inl.co.za