Value key in current market cycle

18 April 2007 Mutual & Federal

THE current phase of the rates cycle refocuses attention on the professional insurance adviser's role as a market educator and trusted source of information on the added value offered by quality short-term products.

So says Mutual & Federal, a short-term insurance leader with a long-term commitment to intermediary-driven marketing.
At a time of firmer rates, the professional adviser can help the public by drawing attention to the value-adding features that might have been taken for granted or simply forgotten, says Sedick Isaacs, General Manager, Personal Business, at Mutual & Federal.

"Extracting the best value for money from your policy is a priority for the public at all times, but even more so when premiums are adjusted," notes Isaacs.

"Advisers can underline their important pro-consumer role by reminding the public of key covers, added services and special product features. Experience down the years shows that it is an enduring challenge to get the consumer to read and thoroughly digest all product information. Often they enjoy cover that has slipped their mind. A reminder at this juncture would be very timely."

To illustrate the point, Sedick Isaacs identified several features from the popular Allsure product that offer substantial value-add, but which might be taken for granted over time. They include:

* Access to HIV prevention and counselling programmes, offering immediate help and preventative treatment to a policy-holder or family member following various types of accidental exposure.
* Roadside assistance and other types of trained assistance in cases of household emergency, available 24x7x365.
* Card protection and fraudulent usage cover to a pre-arranged limit for credit, cash, debit and cellphone SIM cards, available worldwide.
* Medical emergency services to cover a range of life-threatening situations.
* Cover up to a maximum of R5000 in the case of theft while temporarily residing away for home, or similar cover for a guest on a temporary visit to the policyholders home (provided it is not insured elsewhere)
* Rent cover to meet the reasonable cost of temporary accommodation in cases where an insured event renders a policyholders home uninhabitable for a time.
* Cover up to R1000 to ensure a vehicles removal to a place of safety in the event of a mechanical or electrical breakdown. 
* Emergency hotel expense cover up to R250 per person per day for a driver and one passenger for a maximum of two days when stranded more than 250km away from home. (Maximum R2000.00 any 12 month period of insurance)
* Trauma cover should professional counselling be necessary following a hijack, hold-up, theft or attempted theft or any violent attack, subject to a specified limit.

Sedick Isaacs adds: "This list is not exhaustive by any means, but it serves to show just how many value-adding features can be found by close scrutiny of the covers embedded in a quality insurance product.

"Good insurance is still a good deal. By reading their policies carefully, the public can unlock maximum value and get the most out of their insurance cover."



Quick Polls


Financial behaviour experts suggest that today’s risk modelling methodologies ignore your client’s emotional ability / behavioural capacity. What are your thoughts on spicing up risk profiling tools to make allowance for your client’s financial behaviours


[a] Bring it on; my client’s make too many irrational financial decisions
[b] Existing risk profiling tools are adequate
[c] Risk profiling tools should be based on the model / rational client
[d] The perfect risk profiling tool is science fiction
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