It is the responsibility of a BQP / PoSP to ensure that our clients have the right amount of coverage be it Health, Life, Personal Accident. The needs of the client keep changing with age, change in family composition, change in income. Also insurance companies keep coming up with new and innovative products, while our clients are stuck with old products. Reviewing the insurance portfolio of the client hence is of prime importance to help the client upgrade his insurance coverage or move to better products offering better coverage at similar price points and without losing the continuity benefit specifically in Health Plans.
How to do insurance Portfolio review
Whenever you visit the client, do your homework first. Make a list of policies the client is holding with certain basic details and ask yourself some specific questions with respect to the client's current insurance policies. While you may have the answers to some questions, you may also need to ask some specific questions to the clients. Some sample questions for portfolio review are listed below for your reference.
2. What is the total insurance coverage the client has taken?
3. When was the last time the client has increased his term insurance coverage?
4. Is the client expected to receive any income from traditional plans which he has invested in the past?
5. Is the client's spouse having life insurance coverage
Generally the clients don't bother to increase their life insurance cover with time. However, with passing years their income goes up and so does their eligibility to buy a higher sum assured. To increase the sum assured or not is obviously the choice of the client, but if we do this homework beforehand, there is always a scope for discussion on the subject.
Example - Rohit bought a term insurance of Rs. 50 Lac in the year 2009 and upgraded it to Rs. 2 Cr in the year 2015. Currently, he is working in a senior position in an organization and his annual income has increased to 30 Lac. Now as per his current income, Rohit is eligible to get insurance coverage of 6 Cr (20X). You are having a scope to discuss an additional 3.50 Cr cover with him in his next meeting.
HEALTH INSURANCE2. Has he experienced any claims in the last year ?
3. Are all members of the family covered including parents/grandparents ?
4. When was the last time a client upgraded his product or increased coverage ?
5. Is there any room rent capping / sub limits in the current Health Policy ?
6. Is the client having critical illness coverage ?
7. Can the client buy/renew his health insurance for a 3 year term?
Most of our clients are highly under insured. Some clients are stuck with policies which have low coverage, room rent capping up to Rs. 2000-3000, may have sub limits and co-pay. New policies nowadays offer no limits on room rents, have guaranteed bonuses from 2-6 times of base policy value, and all that too at premium rates comparable with older policies. While it may not be advisable to port all old policies, you always have an option to upgrade to the latest plan in the same company or buy a top up to increase the coverage.
By doing Health portfolio review, a BQP / PoSP can get interesting opportunities of discussion for increasing health cover of the clients. Here again, the idea is not to do any sales with the client but to apprise him/her where his coverage is insufficient. This approach results in automatic sales as the onus of having ample coverage shifts to the client.
2. If yes, is the coverage comprehensive & adequate enough as per his/her income ?
3. Are the spouse and children covered ?
4. What is the Temporary Total Disablement (TTD) benefit that the current policy is offering ?
5. Does the policy have a broken bones coverage ?
6. Do the parents have a PA policy? If Yes, do they have broken bones cover?
While many of the clients will still have a Health insurance product, most are not even aware about having a PA policy. An important point to note here is that when you talk about PA with TTD benefit and broken bones cover, it highlights a highly customer centric approach. The simple reason is while the probability of accidental death may be low, the chances of getting injured/hospitalized or having some fractures or unable to go to work due to an accident can be much higher. A PA product without TTD and broken bones cover will be of much less benefit to the client and there is a high probability that client may not renew it in the subsequent years.
The clients who have a PA policy, might have no or low coverage of TTD benefit. In many old policies, the weekly benefit in TTD was restricted to Rs. 5,000-15,000 per week. Current products offer TTD benefit upto Rs. 50,000 per week and broken bones cover upto Rs. 10 Lacs.
2. Has he bought any new vehicles in the last year ?
3. Is the premium for any of the vehicles due in the next 3 months ?
4. Has the client missed renewing any motor premium in the last few months ?
5. If the client is buying a new car, Can he transfer the NCB of the existing car ?
What Next ?
Whenever you are scheduled to meet a client, spare half an hour of your time and be prepared with an Insurance portfolio review of the client. The data related to the client's existing insurance policies is accessible on your desk. When you get prepared with the data, your sales pitch becomes much easier and you will be happily surprised how easy cake walk was to close the new business.
The best way to do a review is to have the policy details/documents ready in a folder. Be prepared, as to what solutions you are going to offer. Summarize the information available with you on a paper for ease of discussion with the client.
Remember, No Ask, No get. So, get started. Try to do at least 2 client IPRs every week. This week is a good time to start reviewing your client's insurance portfolios.