Why insurance should be relationship based

Only an adviser can give a holistic view about policies and help you choose the right one

Insurance customers today have a plethora of choices; they just have to pick and choose the insurance product they feel is suited to them.

The question is, as a buyer, are you confident enough to purchase what you want and after getting to know the product completely? Or is an adviser a good sounding board to have?

Many of us have a family doctor who is completely in the know of our family’s health and requirements. It is easy for him or her to diagnose and make out prescriptions, because the fact-finding necessary for a good diagnosis has been done earlier, by virtue of knowing us well. Wouldn’t you spend time checking references before you visit a new doctor nearby or use apps that promise solutions?

The reason you do this is that you long for comfort, guidance and a personal touch.

Why is it any different for when it comes to insurance advice? This should ideally come from a person who knows your insurance health, seeks facts objectively, does a thorough need analysis and is someone whom you trust! As consumers of insurance products, we have two major challenges viz., time and the knowledge in executing it. When these challenges are addressed by the trusted relationship with your insurance adviser, you get that all-important, anytime accessibility with a personal touch.

It could be an insurance broking company that is in regular touch with you and advises you, or an individual. In today’s context, the customer gets alluring options on insurance products with price as the focus. Price may be an important factor, but it is not everything.

Only after buying a policy for the wrong reasons, or with a variant you hadn’t bargained for, does one understand what errors of understanding had been committed. This bubbles up only at the time of making claims. When insurance is sold based on price, it becomes a commodity. Unfortunately for many first-time buyers, insurance comes across as a commodity. Insurance should be all about terms and conditions. For a given set of covers or terms, you pay a certain price.