By: Karen Rimmer, Head of Distribution at PSG Insure

Personal or commercial insurance is often viewed as a necessary but somewhat begrudged expense when in fact, taking out insurance cover is part of a holistic financial plan. In a dynamic and evolving environment where we face a multitude of risks, having an adviser on your side can bolster your insurance planning process. Advisers can provide invaluable foresight into new and emerging risks and help their clients make informed decisions.

Expanding on this topic is Karen Rimmer, Head of Distribution at PSG Insure who says that your relationship with your insurance adviser shouldn’t be seen as a once-off interaction or a lifeline in an emergency. On the contrary, “Clients should see their advisers as partners in personal and business matters. Building a foundation with your adviser 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 advisers 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,” she says.

An informed perspective on insurance products

A top-quality insurance adviser will obtain strategic insights from the client and conduct a risk assessment based on the individual’s needs within the framework of their 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. For example, advisers will be able to take their clients through their policies and explain any technical wording or jargon as well as the terms and conditions that apply.

“As an insurance expert, your adviser 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,” says Rimmer.

Risk analysis expertise

Advisers 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. These risks are determined by a range of variables including factors such as geographical location, the business’s sector, the crime rate in a certain area or industry and the size of a workforce. Personal and commercial cover take these unique factors into account, which is where an adviser comes in.

Sharing a story that reflects the role of advisers as risk experts, Rimmer says that 30-day car hire has become an issue within the insurance industry due to the delays in how quickly car parts can be sourced and acquired. In one scenario, a client with one vehicle based in Cape Town, was advised to opt for unlimited car hire as part of their insurance cover.

The adviser made this call based on their assessment of the client’s risk profile and the make and model of their vehicle. The client was eventually involved in an accident and part delays resulted in a 65-day delay. In this case, the standard 30-day car hire provision would have been insufficient, and the client was able to avoid unnecessary expenses and hassle while their car was being repaired.

An experienced view on what may lie ahead

Over and above their valuable perspective on specific insurers, risks, insurance advisers can also provide recommendations to assist their clients in making informed decisions that could have a significant impact in future.

Rimmer says that in the case of a Body Corporate, the adviser 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 adviser was able to help the client prevent incurring a substantial and untimely financial loss.

These and other similar examples continue to demonstrate that advisers play an important role in helping clients understand their policies and match their unique needs to the right type of insurance cover,” she concludes.