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Questions for an insurance broker

Jo

I am about to start discussions with our insurance broker for the renewal of our private medical insurance ans whilst I have been involved in the process with my previous manager, he left the company a few months ago and it's now down to me.  I am involving our Finance Director in the discussions but it would be really helpful to have a few pointers regarding what questions I should be asking and/or what things I should be aware of during the process. 

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  • Hi Jo
    The first thing I would expect the supplier to do is to present details of your last 3 years claims record ("sinistrality") and the premiums you have paid for this - i.e. you should clearly be able to see what gap exists (both positive and negative) between the two sets of figures. For example, if payouts from the insurer exceed what you have paid then realistically you can expect an increase in your premium. Equally if claim payouts have dropped over the years, then so should your premium - unless the insurerer has some excellent explanations or you want to increase your cover level....
    You should also be looking at the demographics that are being used to calculate the premiums - many companies often provide suppliers with use out of date or incomplete data on which to estimate premiums. Companies with lots of young couples with no children can expect claims to rise over the years as children come into the equation - equally, if you have a lot of people 55+ and few between 40 and 55 then at some point the higher risk older people will fall out of the equation and costs should drop. Keeping your insurer up to date at least every 6 months with reliable demographics data will help avoiding surprises.
    Hope this helps
  • in reply to Ray
    Hi Ray - thank you for this, really helpful :) I will prepare some demographic detail as I don't think we've done this or been asked for it. Any tips regarding how I know if they are doing a good job for us?
  • in reply to Jo
    Should have specified - tips for knowing if our broker are doing a good job or not?
  • in reply to Jo
    Personally, wouldn't bother with a broker - they cost the insurers significant money - would just approach two or three of the usual culprits in terms of major insurers and negotiate something if needs be by playing one off against another
  • in reply to Jo
    Personally, wouldn't bother with a broker - they cost the insurers significant money - would just approach two or three of the usual culprits in terms of major insurers and negotiate something if needs be by playing one off against another
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