Insurers flooded with flood claims
01 February 2013 | Magazine Archives FAnews & FAnuus | Short Term | Alan Blem, Associated Loss Adjusters
Being a broker in times of natural disasters requires a special type of service that provides the client with a feeling of safety, hope and trust in the short-term insurer. Not only must the broker oversee the administrative issues surrounding disaster claims, but also pay special attention to traumatised clients who have to come to grips with the financial and emotional aspects of loss and possible future hardships, saya Alan Blem from Associated Loss Adjusters.
Large parts of the Limpopo province and Mpumalanga were recently flooded due to heavy rainfalls that lasted for more than a week. Preliminary indications suggest that the floods were even more severe than the floods of 2012 in the Hoedspruit area, due to the rising water levels of the Limpopo and Sashe rivers. The banks of the rivers have been washed away, resulting in loss of lives, crops and animals and extensive damage to property.
Brokers become heroes
If there is a time that clients are thankful for being insured, it’s during a natural disaster. The opposite is also true – many people would like to kick themselves for not being insured against natural disasters. They are the unwise few who believe that "something like this will never happen to me”.
The blessed among the disaster-struck communities - the Insured – now look up to their brokers for guidance, help, advice and service. And it is the duty of the broker, on behalf of the insurer, nor to leave their clients in the lurch – even if they do become emotional and difficult.
The broker must always remain professional at all costs and render the type of service he/she would have expected to receive from a good broker. A speedy solution to the problem is what the client hopes for.
Stay close to the client
In times of distress and disaster the broker becomes the client’s arms, legs and brain. He/she has to act calmly and productively on behalf of the grief-stricken clients and ensure that they are treated fairly, their rights and interests are preserved and that fair settlements are achieved.
Should the expectations of the clients in such circumstances be more challenging than usual, the broker must prove that he/she is up to it and can handle any situation with patience and compassion. His actions in such times become the silent marketing edge that he needs so much from his loyal clients in the future.
By continually being involved with the client, the broker ensures that communication is maintained and all required information is provided timeously. This extra attention will ensure that the client’s trust is built and that a feeling of safety is assured during the administrative process.
Broker assistance becomes paramount
Brokers must act fast and efficiently during times of disaster. Their reputations are at stake. They must provide assistance in locating and accessing some of the properties, which would otherwise not have been reached.
The insured must be briefed on the process to be followed, the cover must be reviewed, shortcomings must be identified and proper solutions may be proposed to minimise future losses.
Then the extent of the damage will be ascertained in days to come, reports will be compiled and the adequacy of the Sums Insured will be estimated and salvages will be dealt with.
The broker should be instrumental in assisting the Insured in obtaining contractors and quotations. Most importantly he/she has to ensure that a properly formulated claim is compiled.
To ensure swift and continuous movement of the process, the broker will be wise the make use of Policy Schedules in order to prevent any misunderstandings and unforeseen delays which may otherwise result, as became apparent during last year’s flood claims. Such delays must be avoided at all costs in order to remain trustworthy and reliable.
Future insurance
If the broker is successful settling claims during disasters, he can rest assured that he will have loyal and satisfied clients in the future.
After rendering excellent service, he must continue advising his clients on underinsurance, review the Sums Insured regularly, consider an Escalation Clause which can safeguard the clients against average local costs and enable them to procure the best possible reinstatement costs.
By doing this the broker will be flooded with new clients in future.
