A security appraisal is done for every risk and each feature of a risk is awarded points (positive or negative).
 
An “average” risk should end with a score of ”0” whereas substandard risks could go as low as -3000 and good risks as high as +3000.
 
The system is not designed to replace the underwriter but does help to remove the subjective influences to which some underwriters are prone, according to the phases of the moon.
 
It is really an “early warning” system and may cause the underwriter to give special consideration to the risk.
 
Contents
  • Correct cover = full recovery in the event of a claim
  • Eradicates the “proof of ownership” problem
  • Less hassle at claim time
  • A handy list of assets for estate purposes.
  • If update service is selected:
      - Automatic revision according to actual indices
      - Regular contact to check for new acquisitions or disposal of assets
  • Assistance with formulation of claims

Broker

  • Increased client loyalty = fewer lapses and hassle free claims
  • Reduced PI exposure
  • Increased earnings Higher premiums = higher commissions
  • Adds a dimension to service – an increasing number of clients expect the service

Insurer

  • Correct premiums for exposure – lower loss ratios
  • If one uses the statistics of both OVER and UNDERINSURED clients, then the average underinsurance is 34% .
    If premiums are increased proportionately, survey costs should be recovered within a fairly short period of time
  • If the book is correctly valued then the insurer gains a competetive edge
  • Substantial reduction in fraudulent claims