News & Insights

Claims coverage the big difference when using a broker

Published 30 May 2018

A new report released by Vero has found that clients that use a broker find themselves in a better position come claim time.

The latest tranche of data from the Vero SME Index found a stark difference in claims outcomes for clients that use a broker versus those that purchase their insurance direct.

The report found that just 10% of direct buyers are covered for the full amount of a claim, compared with 23% of broker clients. At the other end of the spectrum, 26% of direct insurance buyers had less than half of their total claim covered compared to just 13% of broker clients.

David Hudson, internal account executive at Gallagher’s Parramatta branch, said that the report highlights one of the best reasons for using a broker alongside their insurance expertise.

“Our service isn’t just a competitive quote but if a claim does arise then we will hold your hand and walk you through that process with you from start to finish,” Hudson said

“We do have a dedicated, specialised claims team but we ask them to keep us up to date with how a claim is progressing.”

The Vero report noted that 62% of broker clients are satisfied with the claims experience, compared to 56% of direct buyers.

“Claims not only provide evidence of the value that brokers deliver, but also are a chance for brokers to demonstrate true expertise to their clients at a time when their insurance is being closely scrutinised,” the report notes.

“Brokers have deep and relevant understanding of a wide range of claims scenarios and sharing this information can be of immense value to clients.”

Understanding a policy and its wordings at the time of purchase is key to ensuring that you know what is covered in the event of a claim. Hudson said that using a broker helps SME and other clients gain a better understanding of their coverage from the outset.

“We all know insurance likes its jargon which can make it confusing,” Hudson said. “We break it down into simple language for our clients.

“Part of that is giving claims stories and examples and showing clients why and what could happen to them.”

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