Cost is king ... (isn’t it?)
Now this may not come as a surprise to too many of us. To think business owners and controllers are going to ignore cost would be just plain stupid. However, perhaps more worryingly, just 38% 0f the same SMEs ranked scope of cover as a top consideration. To ignore cover and focus purely on cost is an incredibly dangerous path to follow and may not end well for those who tread it.
Mark Clayton – InEvexco Managing Director commented “This is indeed a statistic which should set alarm bells ringing but fortunately I believe the vast majority of our clients are more aware of the significant risks in choosing insurance policies and broker services based on price with little or no regard to other crucial elements”.
Underinsurance isn’t the answer
As an additional worry there is an increasing concern within the insurance industry where price sensitivity is contributing to an underinsurance problem. Underinsurance leads to reduced claim payments. Deliberate, significant underinsurance could even lead to a claim being totally denied by an insurer. So another trap opens when for a relatively small saving in premium a company could be left with a large financial gap in cover. What’s the point in that? Some might say thats ‘chasing fools gold’.
Value for Money is the Aim
Interestingly, the survey highlighted 58% of businesses rated ‘Brokers Understanding’ of their business and ‘Quality of Service’ close to the premium cost importance. This underlines the importance of specialist brokers who have developed an empathic understanding of their clients’ businesses and insurance needs.
“Across the range of specialist insurance products and covers InEvexco offer, these are supported by professional, experienced staff who not only understand their customers’ industry but have tailored certain insurance policies to provide more relevant and comprehensive cover to our clients”. Mark Clayton proudly says.