Last year your body corporate would have spent some thousands on general insurance. It is a significant expense when it comes to calculating lot owner fees. We suggest price and coverage can be improved with our professional services. As to price alone, we have saved some clients more than 20% ($10,000’s) per annum. Claims procedure, risk management, coverage wording and sub-limits are also noticeably better.
The most fundamental, compelling reason to have this insurance law firm manage a broker tender procedure is that independent lawyers have no interest to receive remuneration of any kind from insurers, reinsurers, brokers, managers and/or other stakeholders.
Insurance cost savings may be achieved in a variety of ways including:
- Changing the broker’s remuneration from insurer commission (from reinsurers / insurers direct to broker) + commission-based invoiced brokerage to only fixed fee invoiced brokerage.
- Ensuring the broker negotiates the best price with insurers every year and actively ‘shops’ your business every second year. A more aggressive approach is not commercially plausible.
- Managing claims and near-misses to minimise impact on the body corporate’s insurance record which, as you probably know, is akin to a credit agency record. Most insurers subscribe to Veda Advantage-owned Insurance Reference Services which is a central database of personal and commercial insurance history for most persons and businesses in this country.
- Ensuring risk management successes translate not only into treated risks but also cheaper premiums (that is, acknowledged less risk for transfer to insurers) in accordance with Australian and International standards (monitoring and reviewing; communication and consultation).
Arrangements vary. A significant portion of policies arranged by certain managers have a redirection of the insurer to broker commission; it goes to the manger instead. This commission may not be recorded on the broker’s invoice so not even known by a committee member to exist. Sometimes part of the actual invoiced brokerage is also given by the broker to the manager. Whilst in good manager hands, your body corporate should never be at risk of this predicament.
Equally, your manager’s fees should reflect any insurance-related services, advancing body corporate interests and/or in claims handling.
Our principal lawyer has been an ANZIIF certified insurance professional since 1992 in various roles of claims, underwriting, loss adjusting and since 1998 as an insurance lawyer.
This law firm is also an ‘owner occupier’ at Southport Central since January 2007 and we know all about obtaining the best coverage, service and price balance for insurance business.
For more information, please call us on 5518 7777 for a no-obligation review meeting.