Are you handling risk insurances?
[ April 16, 2015 ]
Some Dover advisers only work with risk insurances, most do some work with risk insurances, and some do no work with risk insurances. This week Dover has handled some risk insurance work for an adviser who normally does not do this work. He is delighted. He is now getting the first year and the subsequent commissions for the life of the policies. Extra recurring profit, extra recurring cash flow and therefore extra capital gain tax free goodwill. Flo’s summary e-mail tells the tale:
Hi Name Changed, As discussed, you are looking to access insurance advice for your clients. As you are Dover adviser but do not have significant practical experience in risk insurances you have asked Dover to handle his work for you, for a fee, with you keeping all commissions. We charge $500 plus GST per policy for providing the advice, and working with your clients to make sure the advice is properly implemented. Most insurance products pay commissions and we agree to pass on to you ALL commissions received on your clients’ insurance policies. This includes all upfront and ongoing commissions. Our fee is billed to you, and is payable once the SoA is provided. The process is fairly simple and is as follows: 1. You provide Dover’s FSG and fact finder to your client. The fact finder will only request information required by us in order to provide insurance advice. 2. Your clients should complete the fact finder as best they can, and you can assist with it. Given you are their accountant, I suspect you have most of the information. 3. Send the signed FSG (acknowledge receipt page) and signed fact finder to firstname.lastname@example.org 4. If we require more information, we will request them from the client, via you. 5. We will not contact the client other than via you. 6. Once the advice is prepared, the SoA will be sent to you. If your client has any questions about the SoA you should contact us to discuss. 7. To proceed with the application, we just need a signed ‘authority to proceed’ which is usually at the back of the SoA. 8. Once the insurance is in place, no further advice is provided unless requested by you as the client’s agent, and any future work is charged appropriately as per the FSG. 9. Commissions are received generally a month after the premiums are paid. Keep in mind that most insurers have a clawback period of 12 months so if your client cancels a policy within the clawback period, we will invoice you accordingly. The application and underwriting process is generally managed by our insurance team in our Ho Chi Minh office, Vietnam. With a dedicated insurance manager in our Melbourne office as your contact.
If you are interested in introducing risk insurances to your clients get in touch with Florence on 03 9583 6533 or email@example.com . This is a great way to provide better services to your clients. And remember, as we say at the CPD days, if you don’t provide the service someone else will…