Saturday 10 December 2016

It's Time For The Insurance Industry To Be Serious About Optional SABS

This week I was speaking to my insurance agent who preparing my renewals. I was asking her about how the optional benefits have been impacted by the regulatory changes that became effective on June 1st. During the conversation it came out that she only had two clients with optional benefits - me, and my daughter and son-in-law. That's it!

Insurance consumers in this province aren't that risk averse. They are foolish and misinformed. As the government continues to whittle away at mandatory accident benefits, consumers maintain the belief that the basic level of coverage is adequate. Who's fault is that? Who is responsible for ensuring consumers are properly informed? The insurance companies, brokers and agents.

When I walk into Best Buy, just about any purchase comes with an aggressive pitch for extended warranty. The sales reps will try to convince how little it costs to purchase that extra protection. They sell a lot of them. People have no problems dropping $100 on an extended warranty for a dishwasher but can't get their head around spending that on one million dollars of additional health care protection. I paid just $98 for that over the past year. Just two tanks of gas.

People aren't happy about the price of auto insurance so they try to keep coverage down to save money. It's the responsibility of the insurance industry to make sure that they at least understand what they are getting for the money.

2 comments:

  1. Insurance companies notifies the clients when changes happens and asks clients to contact their broker to discuss further. Insurance companies also sends information with the renewal package advising them of the changes that occurred on their policy due to legislative changes. Insurance companies and brokers also takes the opportunity whenever they speak to their clients and explain the changes and offer coverage that has been lost due to the changes but clients always thinks that insurance brokers/companies are trying to take more money out of their pocket. I am not sure if the policy holders actually read those documents.

    I have been an insurance broker for over 16 years and have talked to many many clients about the changes myself but many of them are not interested in paying extra for the additional benefits as they want to keep their premium low.

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  2. Willie, I think I am going to disagree with you on your last paragraph. Being an insurance professional and been in the industry for over 16 years, I have talked to many many clients myself and offered additional coverage for a cost of a coffee but they always wants to keep their premiums low and declines all the additional coverages. However, they only realize that they do not have certain coverage when a claim happens.

    New SABS rule that came in in June 2016, FSCO, IBC had posts on social media. Insurance companies sent pieces of information in mail to each of their policy holders. You also receive a notification with your renewal documents. Your broker/insurance company advises you of the changes when you call them to discuss your policy. New policy holders are notified of the changes and are offered additional coverage. Brokers gets clients signature to confirm that they have been advised, explained and offered additional coverage/benefits and gets the clients to sign off confirming they are making informed decision of declining the extra coverage.

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