Useful Tips from Polis Re

1. How to use the tips
2. The original material
3. What really matters when choosing insurance
4. How a consultant can help
5. Direct approach or support
6. Questions before arranging cover

How to use the tips

The original material on the role of an insurance consultant and on common misconceptions is preserved in full below. The wording reflects the author's position at the time of publication. The current addition explains which criteria are worth checking today and where the line lies between consulting, intermediation and the activity of an insurance company.

The original material

1. Trust is the key factor in cooperation;

2. In insurance, quality does not always depend on price;

3. The client is always right;

4. Someone who offers only one product cannot describe it objectively;

5. Use the advice of specialists;

6. Working with one insurance company for a long time does not mean a high quality of insurance services;

7. The possibility of choice is the main component of quality;

8. Save your time;

9. Through our work we create a civilised and high-quality competitive environment.

Misconceptions

1. Working with an Agency is more expensive than working with a representative of a single insurance company (i.e. a manager, etc.).

Comment - This is a financial market and there is no concept of the cost price of an insurance product; the price is determined by the insurance company's capacity and underwriting, as well as by

knowledge of the features and specifics of insurance.

2. We have enough resources of our own to select an insurance company.

- a person who deals with insurance only from time to time will be in serious difficulty and is unlikely to make the right choice;

- resolving situations that arise during the term of the contract will constantly take a great deal of time;

- the available funds and employees' efforts are far more effectively directed at production tasks;

- when choosing an insurance company, non-specialists pay attention to the wrong criteria, not those that really matter.

3. It is better to work directly with an insurance company.

Comment - It is impossible to work directly with an insurance company because an insurance company is an inanimate entity and cannot answer your questions or

conclude a contract. The insurance company vests a representative with authority: a manager, an agent, etc., who in turn represents its interests. In this way

you will always be working with a representative of the insurance company.

Here you face a choice: to work with a representative of one insurance company, who accordingly cannot be objective, or to work with a

representative of all insurance companies of the Republic of Kazakhstan, who has greater knowledge of the insurance market and provides objective information.

4. You are sellers just like the others.

Polis Re does not sell; we offer a choice of the best insurance proposals, carefully selected for you, and the final choice of the insurance company is yours.

Thinking aloud:

1. The governments of the USA, Russia, Germany and many other developed countries buy analytical information on the political situation in various regions of the world from a small French analytical agency. Why do countries that have trillion-dollar budgets and hundreds of thousands of people responsible for such information do this? We cannot yet answer this question fully.

Obviously, engaging independent specialists in various fields is becoming a necessity.

P.S.

"No argument can show a person a path that he does not want to see".

What really matters when choosing insurance

Offers should be compared on the same set of parameters. A low premium may come with narrower cover, a high deductible, lower limits or additional exclusions. First define the risk and the desired result, then compare the terms of several licensed insurers.

• the object and risks expressly stated in the contract;
• the sum insured, limits per event and territory of cover;
• exclusions, grounds for refusal and the parties' obligations;
• the existence and amount of a deductible;
• the procedure for notification, inspection and submission of documents;
• the time limits for considering the claim and making the payment;
• the licence, financial stability and official information about the insurer.

How a consultant can help

A professional consultant collects information about the risk, explains the differences between products, helps prepare the initial data and organises communication. He or she must not hide which organisation they represent, receive payment in a non-transparent way or promise a payment before the insurer's decision.

The benefit of an independent comparison is especially noticeable for businesses with complex property, motor, professional or liability risks. The final decision, however, is made by the client, and the legal obligations are determined by the contract with the insurance company.

Direct approach or support

Both options can be perfectly normal. With a direct approach, the client deals with an employee of a specific insurer and receives information about that organisation's products. With support, an intermediary can compare several offers, provided that his or her authority and remuneration model are transparent. The choice depends on the complexity of the risk and the client's time and competence.

It is important not to treat every comparison as automatically independent. Find out which insurers the consultant works with, who pays for the consultant's services, whether the list of offers is restricted and who will handle the insured event.

Questions before arranging cover

1. Which insurance company will be named as the insurer in the contract?
2. Does it hold a licence for the required class of insurance?
3. Which events are covered and which are excluded?
4. How is the amount of loss determined and how is the deductible applied?
5. Which documents are needed in the event of a claim, and by when?
6. Whom should I contact after the cover is arranged, and who is responsible for the advice?
7. Can I get a draft contract and the insurance rules in advance?

Mistakes to avoid

• choosing solely by the lowest price;
• relying on oral promises that are not in the contract;
• not checking the details and the licence;
• concealing circumstances that affect the risk assessment;
• signing a document without the rules and annexes;
• passing confirmation codes or an electronic signature to third parties;
• delaying notification of an insured event.

A short selection procedure

Define the risk → request several comparable options → check the insurer → study the cover and exclusions → clarify claims settlement → keep the contract and proof of payment.

This material is for information only. The decision should be made on the current terms of the specific contract.