insurance

Submitted: Sunday, Feb 28, 2021 at 11:45

ThreadID: 141156 Views:7905 Replies:4 FollowUps:4

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qldcamper

Just checking if anyone else has overcome a problem I am experiencing.
Needing, or wanting to reassess my insurances on vehicles and camper among other things.
Once upon a time I used to go to a broker or agent with my list of requirements and they would find a policy that suited my needs as closely as they could find and we lived happily for a while after.

These days you go to a broker or agent and all they do is give you a list of companies that cover the type of thing I want but just give me the document that lists all the things they cover in the first half then all the exclusions they don't cover which seems to be most of the same things they listed in the first half, quite confusing and leaving with absolutely no idea what it actually covers.

We send them an email with our requirements and no way will they answer us in writing with a suggested policy, just a list of links for us to make our own choice.

Anyone know of a broker or agents that actually does what they get paid for?

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Reply By: Peter_n_Margaret - Sunday, Feb 28, 2021 at 11:55

Reply By: Kenell - Monday, Mar 01, 2021 at 08:29

Monday, Mar 01, 2021 at 08:29

What you are experiencing is in part the result of Govt regulation and also the emergence of the direct market. The 2 are linked. For an intermediary to analyse your needs, advise you on options and get prices he has to spend more time producing documentation and doing research than is economical. He then can't tell you about products in the direct space or how they compare to the ones he has access to. The emergence of the online / call centre / one size fits all has been fuelled by the regulations. These players don't give advice - they send you the wordings and let you make your own decisions on suitability. You "saves ya money and takes ya chances".
Personally I still use a broker for most of my needs but he is also a mate. He keeps his fingers on market developments. You may find a small suburban broker in your environment who is still prepared to assist but the larger firms are less likely.

AnswerID: 635316

Follow Up By: qldcamper - Monday, Mar 01, 2021 at 12:33

Monday, Mar 01, 2021 at 12:33

Interesting.
What exactly do they get paid to do then?
I thought that a broker or agent is legally bound to ensure their client understands the product they are purchasing and dont fall into any traps.

FollowupID: 912896

Follow Up By: Kenell - Monday, Mar 01, 2021 at 12:59

Monday, Mar 01, 2021 at 12:59

"What exactly do they get paid to do then?"
Brokers are paid to "act in their customer's best interests". Agents (as they used to be called) are paid to act in the interests of the company they represent (most wouldn't acknowledge that but it is the case).
The business you are seeking to place is "Retail Business" under the legislation. The onus upon the broker for this is much greater than it is for Wholesale Business ie. say a retailer / pub etc. The hoops he is required to jump through whether you proceed to buy thru him or not are the problem. He is also required to maintain a record of your enquiry and any discussions for 7 years including why he recommended the products, how they would have met your requirements, copies of Financial Services Guides, Statements of Advice etc. 8 times out of 10 after you get his quotes and all of the docs you will tell him you can get it cheaper online even though the product you choose is probably inferior to his suggestion. Remember though he can't advise you on their products because he is not accredited in them.
You are loosely correct about the broker being "legally bound" etc and after considering the above many are simply saying all too hard and working only in the wholesale market.

FollowupID: 912897

Follow Up By: qldcamper - Monday, Mar 01, 2021 at 13:42

Monday, Mar 01, 2021 at 13:42

Thanks Kenell.
The internet has destroyed many businesses unfortunatly and flooded the country with cheap crap that nobody is happy with.

Insurance is gambling that something might go wrong and like gambling the more you invest the greater the rewards.

The broker that I used for many years in my small town did a fantastic job but he sold and retired and the staff left one by one and so did the experience and service.

Would love to find a similar business but is proving difficult.

FollowupID: 912899