Brokers go ‘above and beyond’ for clients hit by pandemic, disasters
Brokers went to extra lengths to help affected clients manage the financial impact arising from the pandemic, Black Summer bushfires and other natural disasters, according to an Insurance Brokers Code Compliance Committee (IBCCC) report released today.
They tailored policies to lower premiums as an interim measure so that clients need not cancel their insurance coverage, they extended credit, offered premium funding arrangements as well as discussed access to government assistance.
Many also made it a priority to keep clients informed about what insurance claims they could make under their business interruption policies, endeavoured to understand complex policy wordings and ways to keep their businesses operating during the pandemic.
IBCCC, an independent body that monitors the Insurance Brokers Code of Practice, says code subscribers “strove” to support clients even as they were facing the same disruptive challenges from covid and natural catastrophes of 2019 and 2020.
“Insurance brokers have not been immune from the pressures of doing business in this environment,” the IBCCC report said.
“It was pleasing to see many code subscribers embrace their position as intermediary between the client and the insurer, often going ‘above and beyond’ to get the best possible outcome for the client.”
The National Insurance Brokers Association (NIBA), which owns the code, says the report reinforces the value brokers bring to their clients.
“Faced with their own challenges of running their own businesses through the pandemic, the findings demonstrate that brokers were able to adapt and stay in close communication with their clients,” CEO Philip Kewin told insuranceNEWS.com.au.
He says the role brokers can play in resilience and mitigation is also highlighted in the report and will continue to be an evolving dynamic.
The report is based on an own motion inquiry the IBCCC launched to find out how code subscribers and their clients were affected by covid and 2019-2020 natural disasters. The inquiry focused also on how brokers help clients and at the same time, managed the same challenges their own operations were facing.
The inquiry was based on information from 427 responses to a questionnaire in the 2020 Annual Compliance Statement and from follow-up video conferences with 46 subscribers.
IBCCC says the pandemic and extreme weather events of 2019 and 2020 “tested” the resilience of broking firms.
The Black Summer bushfires had the greatest impact on brokers, with about 33% of code subscribers reporting they were affected in various ways. Some of the specific challenges include an increase in claims and workloads, issues with insurance providers due to delays and issues obtaining policy renewals for clients.
About 65% say they either had one business resilience policy in place during 2020 or were working on one and a number implemented support mechanisms for employees to improve wellbeing during the challenging times.
IBCCC used the findings from the inquiry to suggest ways in which code subscribers can continue to support staff and clients to overcome the ongoing challenges of the pandemic and future extreme weather events.
In relation to covid, the IBCC urged brokers to communicate regularly with clients, such as by emailing useful information and visiting in person, if possible, to discuss their insurance needs in a changing risk landscape.
The IBCC says when it comes to building employee resilience, brokers should understand staff needs and check in on them regularly. Brokers should also have plans in place to ensure business continuity in the event of disruptions.
Click here for more from the report.
