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In every aftermath of natural disasters and unexpected events, insurance companies are called upon to deliver premiums.

In Australia, the general insurance industry profit rose by 4 percent to $5,010 million, a further improvement on the previous year’s strong result.

While, the industry is experiencing tech revolution – insurtech is continuing to transform Australia’s insurance industry. Indeed, with advanced computing and AI capabilities, technology is looking to disrupt the way consumers and insurers interact with each other.

So, does this mean that traditional insurers are going obsolete?

Not necessarily. There are still considerable features clients can gain from a traditional setup that may help their decision-making.

Risk Mitigation Through Insurance Brokers

In an interview with Evan Kerr of Brokers National, he explains that brokers are essential in helping clients navigate coverage and claims processes.

This stage can be critical, especially since general insurance spans a whole list of coverage types.

For instance, you could have a domestic type of coverage, which includes home, its contents, valuables away from home, and also motor vehicles like car, motorbike, jet ski, and others.

There’s also the commercial side to general insurance, where clients have their business, public liability, professional indemnity, and cargo coverage.

For the novice, knowing which type of insurance to prioritise and what level of coverage to invest in would be a bit hard to figure out. It’s the job of the brokers to enlighten clients and give sound advice when it comes to these features.

Furthermore, brokers are able to assist during those difficult claims phases.

As Kerr says, “Part of insurance brokers’ service [is that] we find ourselves on claims experience… we fight them to make sure they get what they are entitled to.”

What Insurance Brokers Can Offer

With the proliferation of tech devices and apps, it’s no surprise that many individuals would be attracted to automated online insurance offers.

Kerr shares that modern insurance companies, like Brokers National, are keeping up with this trend. They have an online quoting system ideal for those who prefer the convenience of not having to discuss insurance options in person.

However, their firm keeps the face-to-face work robust, given that there will always be clients who would want that end-to-end service – where brokers and clients discuss the best mitigating measures available.

According to him, “There’s a lot of things brokers can do that direct insurance companies can’t.” And this applies to how clients understand the fine print. Kerr also mentioned that if, say, your building costs $300,000 and is insured only for $150,000, there are instances when the clause could pay only $75,000.

These and a myriad of other considerations are what brokers can guide clients on. Indeed, it’s all about educating the clients on how to fully secure their valued assets.

The Takeaway

Insurance is inherently about protecting oneself from risks. With the help of financial experts and brokers, clients can take a more strategic approach towards financial security.

Are you interested in learning more about how to manage your insurance successfully? Sign up on Dollars With Sense for free and get tailored advice about the latest in investments.