High-risk clients – bring them on

Posted by Tim Larkin on Mar 15, 2019 12:10:00 PM
Tim Larkin

High risk clients - bring them on

Why the untouchables could be the next big thing for your business.

As an insurance adviser you strive to represent your clients best interests and provide them with the best-value insurance in the market. However, what happens when your client has a poor claims history and many of the underwriting options are simply unavailable to you? 

The answer is that your client is left with very few options. They may either take the insurance on offer, often from their existing insurance provider at a significantly higher premium, or risk being uninsured. 
Many small businesses will take the risk of being uninsured rather than dedicate the time and money needed to address an issue they don’t see as top priority ... until it’s too late. At this point disgruntled clients will start to look for new representation. And, as an adviser, you may be approached by potential new clients. 
The lesson here is that with adversity comes opportunity. For an SME, addressing these issues is difficult and time consuming and often outside their comfort zone. By providing a simple, easy-to-implement and cost-effective solution as part of an overall insurance strategy you can differentiate yourself in the market and provide exemplary service, winning the long-term loyalty of your client.
Furthermore, in an increasingly regulated market where greater disclosure and transparency of fees is going to be required, a comprehensive solution that offers proactive risk management strategies combined with insurance policies delivers a value proposition that businesses will be prepared to pay for, improving margins and profitability.
Large enterprises often have risk management solutions at their disposal, either through internal systems, processes and governance or in some instances provided by their underwriters as part of an overall service offer. SMEs, due to time and resource constraints, have tended to be treated differently. Now they don’t need to be.
Dacreed offers SMEs targeted risk management solutions at a cost that is merely a portion of the premium rebate the client receives for implementing it. This makes the proposition cash flow positive from day one.
Where the client is currently unable to secure insurance or is simply seen as high risk and is therefore paying significantly more for cover, Dacreed quickly starts them on the path of better risk management. By using a platform linked to all employees and an audit trail, businesses can now demonstrate a change in internal behaviour that would otherwise be uneconomical to review by the underwriters themselves.
Once a cultural shift occurs, businesses will find their staff automatically identifying and minimising risks as part of their day-to-day activities. Businesses will benefit from reduced premiums, but more importantly the interruption caused to the business when a preventable event occurs will be a thing of the past.
As the saying goes, prevention is better than cure. The broker who provides both prevention and cure in the form of risk management and insurance is going to be a valuable long-term partner for any business.




Topics: Insurance premiums, Business Management, Software

Proactively train your staff in AML/CFT

With the Dacreed online compliance training system you can:

  • assess your team’s knowledge, application and retention of AML/CFT training
  • keep track of your team’s completion dates and completion rates
  • tailor the training for different employees depending on their roles and tasks