Do We Communicate Well?

Communicating Adequate Insurance Cover Effectively

Dave Clare BSc (Hons), MCIOB, C.Build.E, ACILA

Head of Surveying Services

Nicola Sutton BSc (Hons), ACILA

Head of Private Clients

Objectives▪ The conversation cycle

▪ The information we need to provide to Clients

▪ The information we need to invite from Clients

▪ The information we need to hear from Clients

▪ The advice we need to give to Clients

▪ When effective communication wins the day

▪ When ineffective communication ruins the day

▪ The future of conversation in a digital and socially distant world

Importance of Good Communication

Effects Of A Hardening Market▪ Global economy under strain

▪ Market withdrawal

▪ Restricted / Amended terms/ Increasing premium

▪ Increased self insuring/ Risk taking

▪ Reducing commercial influence

▪ Stricter application of terms

Transmit & Receive

ReceiveTransmit

Transmit & Receive

ReceiveTransmit

The Conversation Cycle

The Conversation Cycle

Inform

Invite

Listen

Acknowledge

Inform

1. Who am I?

2. What do I do?

3. What are the parameters of my role?

4. What are the limitations of how I can help?

5. What I need from you?

Make Acquaintance

Inform

It’s the law!

What MUST be actively disclosed NOT required to be disclosed

Knowledge of senior

management

Knowledge of the

insurance team,

including brokers

Information

reasonably revealed

by a reasonable

search

Information held by the

insurer, their supplier and

accessible to the

underwriter relevant to the

risk

What an insurer

writing this type of

risk would

reasonably be

expected to know

Common knowledge

Clear

Accessible

Material

Disclosure

Fair Presentation Of Risk

Information We Ought To Know

1. Arrange a mutually convenient time and appointment (Don’t rush!)

2. “Meet” with the person with the most knowledge

3. Ask open and invitational questions

4. Funnel questions to understand the risk

5. Control the flow

6. Take notes…

7. Demonstrate listening

8. Acknowledge the request

9. Summarise

10. Deliver on promises

Ten Steps to success

Invite

▪ How much do we recall immediately after listening to someone?

▪ How much time do we spend listening?

▪ How much do we remember of what we hear?

Fact Check

Listen

50%

45%

20%

Types Of Listening

▪ Passive

▪ Casual

▪ Intent

Listen

tuning in and out

Requiring FULL attention

Proposal – Changing Risk

“Covid’s been

good to us”

“We got the

test match!”

“We won that

Client”

“Were

scaling back" “We

increased

productivity”

“I’ve put

that in my

SIPP”

Listen - The Story

Proposal - Do your clients say this?

“Isn't market value

the same as

reinstatement

value?”

“I wouldn't

replace the

equipment if it

was damaged”

“I’ll recover

quickly”

“It wont

happen to

me"“A lower sum

insured saves

me premium”

“Is that

relevant?”

Listen – All Risks

SIMPLE

Standardised

Single Structure

Single OccupancyRecent

Easy Access

Listen - Buildings

COMPLEX

Statutory Regulations

Insurable Interest

Architecturally SignificantMultiple Buildings/ Use

Heritage

Contamination

Difficult Access

RISKY

Size

Demolition

LabourMaterials

Fees

SIMPLE COMPLEXRISKY

• High Net Worth Client – Theft of jewellery and cash from the home.

• Significant underinsurance identified during initial visit

• High quantity of artwork and expensive musical equipment

• Sum insured £180,000.00 Vs Value At Risk £300,000.00

• Client understood the values, but not the basis of cover

• Considered non- deliberate and Insurers applied CIDRA

• Benefit of claim given, with simply delay, but…..

• Policy could have been avoided and the claim declined

Why Is Listening Important?

Listen

Why Is Listening Important?

• It’s our job!

• Improves ability to empathise and build rapport

• Allows us to gather accurate information

• Allows you to pick up on what they’re not saying

Acknowledge

• Allows you to respond to issues!

The Conversation Cycle – Keep Going!

Inform

Invite

Listen

Acknowledge

What is the consequence?

Non Disclosure/ Inadequate Cover

The Insurance Act

▪ Policy Voidance Ab Initio

▪ Amended Terms

▪ Rateable Proportion (Premium Collected vs Actual Premium)

Consumer Insurance (Disclosure & Representations) Act

▪ Policy Voidance Ab Initio

▪ Amended Terms

▪ Application of Average

Inform

When effective communication wins the day…

Karen has a new prospective Client, who is keen to be adequately insured but to

pay the right price…

▪ She Googles the site

▪ She sees a large but simple structure

▪ She makes her introductions and advises how she can help

▪ She hears a story of a diverse and multi faceted business premises

▪ She visits the website

▪ She recommends a building valuation

▪ The Client is thankful that someone has truly understood his business and

offered a considered quote

▪ He gratefully pays a higher premium and she secure the business!

Winning

What’s Outside?

Winning

What’s There?

▪ Restaurant

▪ Swimming pool, water slides, changing facilities

▪ Gymnasium

▪ Costa Coffee

▪ Ice Rink/ Theatre

▪ Ski Slope

▪ Conference Suite

▪ Office Space

▪ Car Park

Winning

What Does It look Like?

Winning

▪ Restaurant (Let)

▪ Swimming pool, water slides, changing facilities

▪ Gymnasium

▪ Costa Coffee (Franchise)

▪ Ice Rink/ Theatre

▪ Ski Slope (Plant & Machinery)

▪ Conference Suite

▪ Office Space

▪ Car Park (shared)

Who’s is it?

Winning

Guess the value?

▪ Sum Insured £17,000,000

▪ Value At Risk £26,876,044

37%

Underinsured

Winning

When ineffective communication ruins the day…

Losing

Ben has a Client of 15 years, he hasn’t had time to catch up this year, as his

colleague has been furloughed…

▪ He looks at his usual three Insurer premiums

▪ He drops a polite email, saying ‘Hi’ and encloses his quotes

▪ His Client calls, to say ‘Thanks’ and promises to look at the quotes ASAP,

noting he has been really busy with his latest order

▪ Ben empathises with the ‘Crazy Year’, but quickly hangs up because its

month end

▪ Ben learns later that his Client was now the No:1 UK provider of PPE to NHS

▪ Ben loses the business to the mortgage lenders insurance division, who are

lending to expand the premises and cross sold

Conversation in a digital and socially distant world

The Future

▪ Intensity Increased

▪ Loss of Physical and Visual Interaction

▪ Mitigated with Zoom/ Teams

▪ We Must Innovate!

Our Services

Business Interruption Advice

Building Reinstatement

Valuations

Machinery, Plant & Any Other

Contents Guidance

Passion. Partnership. Progress.

Right Person. Right Place. Right Time.

Business Interruption Advice

Building Reinstatement

Valuations

Machinery, Plant & Any Other

Contents Guidance

The Future

▪ FAQ Support/ Simplified Initial Inquiry

▪ Desktop Advice/ Remote Video Survey

▪ Visit for complex

▪ Increased reporting time

▪ Greater accessibility to data

www.questgates.co.uk/valuations