Advisor Risk refers to the potential pitfalls and conflicts of interest that can arise when relying on an insurance broker or advisor whose interests may not fully align with your own. This multi-faceted risk can manifest in several ways:
Conflict of Interest: Your broker may act more as an agent for insurers rather than as your fiduciary, creating a material conflict of interest that could affect the advice and deals you receive.
Market Blocking: The practice of "reserving" allows incumbent brokers to block competitors from offering better prices, limiting your options and potentially leading to less favorable terms.
Lack of Transparency: Brokers may use various tactics to discourage you from exploring other options, such as overstating market difficulties or downplaying the interest of other insurers in your risk profile.
Misaligned Incentives: Brokers often receive commissions and bonuses from insurers, which could skew their recommendations away from your best interests.
Inadequate Risk Profiling: Without a clear insurable risk profile, you may end up with an insurance program that is not fit-for-purpose, leaving you either over-insured or under-insured.
Understanding and mitigating Advisor Risk is crucial for optimising your insurance program, achieving cost savings, and ensuring that your coverage aligns with your business objectives
Geoff Wainwright
Renewing your insurance can be a time where you uncover hidden opportunities for cost savings and improved coverage in your insurance program, without the need to change brokers or insurers. It can also be a time when you have a high level of Advisor Risk. Ready to discover how we can help your company and eliminate Advisor Risk?
See real-life success stories of businesses, like Auriga Group, that have transformed their insurance programs and saved millions!
I have over 20 years of experience helping businesses optimise their insurance programs. I have partnered with Ken Armstrong from Resilient IRM, a seasoned industry expert, to develop the Insurance Broker Benchmarking & Tender Management service, helping clients achieve substantial cost savings and improved coverage.
We've helped clients achieve annual savings of 15% to 36% on their insurance premiums, unlocking significant value and enabling reinvestment in core business activities.
Our expertise has benefited a wide range of clients across various industries, including manufacturing, retail, construction, higher education, and more.
The Ken Armstrong team brings over five decades of industry expertise in general insurance underwriting and captive insurance management, ensuring exceptional results for our clients.
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