To some people, an insurance policy is perhaps one of the strangest things which we will ever buy.
For how many other purchases do we make in the hope of never having to use them?
However, even a cover which is not a legal necessity is one of life’s essentials: a ‘just in case’ item because none of us ever know what life may throw at us.
When circumstances arise in which we do have to make a claim, the prospect of doing so can induce mild terror or confusion.
It can be the moment when policyholders find out that they don’t have cover which is fully appropriate.
Even for those who do have the right policies for their needs, the process of making a claim – gathering the necessary information, filling in forms and dealing with claims handlers – can be time-consuming and daunting.
I think that this is the moment which really demonstrates the value of a broker, both to insurers and the insured.
Effective brokers not only ensure that the terms of a policy reflect what a client requires, liaising with underwriters to create a document which is truly useful and then conveying to policyholders how they can best take advantage of any benefits included.
They also simplify the business of making a claim, marshalling details and expediting matters whenever possible.
That kind of help is, I would suggest, becoming ever more important in relation to private medical insurance (PMI) and not merely because more people have such cover, either personally or through their employers.
Last November, the Association of British Insurers (ABI) described how there had been a 21 per cent increase during 2023 in the number of claims made on individual and workplace PMI policies.
Finding out whether a claim is going to be honoured can add to the stress caused by the medical condition at issue.
A separate piece of research, conducted by the Financial Conduct Authority (FCA) and published in May in the latest edition of its Financial Lives survey, revealed that the most common problem with PMI claims is the length of time which they take to be dealt with.
The same study also showed that the number of successful PMI claims had fallen by five per cent in a year.
Myself and my colleagues at Broadway are often asked to help with problems which have started elsewhere.
One new client informed us that a claim by his wife had already been continuing for eight months and involved a seemingly endless round of conversations with different individuals at his insurer.
We took charge of the process and, in one brief telephone call, quickly managed to determine that material which was still outstanding had, in fact, already been provided, leading to an almost instant resolution.
Such insight can bring welcome clarity to professionals unfamiliar with insurance and the ways in which policies and accrued benefits might be transferred between insurers.
Businessmen and women often don’t have the time to sift through small print and deal with underwriters.
Yet a broker’s relationship with underwriters is critical to making sure that policies are set up and then operated as they should.
In quite a few cases, examining what cover was in place and liaising with an insurer has meant our being able to achieve an objective quickly and alleviate possible client headaches.
We are also well-versed in handling with the more sensitive aspects of claims.
That means not just understanding the process but having an ability to support a client through what might be an incredibly difficult period of their lives.
For example, my colleague Melissa Golder found herself handling a claim on behalf of a woman needing medical tests which, sadly, led to a diagnosis of terminal cancer.
The client didn’t want others to know that she was dying and, in particular, to have to repeat details of her condition at each stage of her treatment to claims handlers at her insurer.
Melissa took care of all those conversations, removing unnecessary stress from her client’s situation.
Furthermore, the woman sometimes didn’t have an insurance-specific query but just wanted to talk. Melissa insisted on being there for her..
When the client passed away, Melissa also made sure that the policy was closed without a hitch.
The woman’s daughter subsequently contacted us to express her gratitude for going well above and beyond the focus on renewal which is common to other brokers.
Yet that is the Broadway way.
It is true that the extremely kind comments which we frequently receive are very welcome, especially as our objective is to do the very best that we can for clients.
Even though claims are sometimes necessary, we find that determining that the essential details of a policy – be it health, home, corporate or cyber – are correct when they begin can make a considerable difference when misfortune strikes.
Anticipating possible problems and possessing the skill and the willingness to resolve whatever issues pop up can be the difference between clients being contented or not and whether claims are paid out or rejected.
Written by Emma Wood, Director of Healthcare