Dangers for Brokers and Clients when Insurers and Underwriters Change Systems
More insurers and underwriting agencies are moving to digitise their business, and the information that insurers are relying on to assess risk and validate claims is being collected in a digital format. As systems change and as insurers seek more information, they will ask more questions and rely on the insured (or their broker) to provide correct and accurate information. Often, it is the broker that enters the information into an insurer system and it is very important that the information entered is accurate. The insurers will transfer the risk of potential data entry errors to the client and their broker, by sending them documentation that confirms what has been entered. However, as most clients are not risk professionals, trying to identify the changes and the potential implications can be dangerous without professional advice. The client may need to rely on their broker to make sure that the correct information has been provided to the insurer.
Ausure Insurance Brokers, the client’s best advocate
It’s the broker who is the client’s best advocate in these situations. During renewal, or if the insurer changes their systems, a broker will review the information provided by both the client and the insurer to identify any potential gaps or issues. Some insurers will assume information, or use default data when migrating into a new system, and it may not be correct or it may need to be reviewed and confirmed by the insured, in conjunction with their broker.
According to Grant Brokenshire, Ausure’s Rural & Distribution Manager, it is potentially, a really dangerous situation for both clients and brokers. if you assume, guess or enter incorrect information, it could have serious implications.