Brokers constantly need to keep a keen eye on loss ratios so that they are able to offer their customers competitive premiums. Even claims that have a small loss ratio can start to add up if they become a common occurrence with your customers, which is why every now and again brokers need to think about the little things.
In general, most motorhome owners will claim for minor accidents or damages such as a broken headlight or smashed window, but if the level of cover they have doesn’t take this into account it could be your underwriters who end up losing out. Increasing crime rates are just one issue that motorhome insurance brokers need to keep a keen eye on, especially if they occur in an area where you know a large percentage of your customers are located.
They say that bad things come in threes, and as an insurance broker you have probably experienced this situation yourself. It only takes a small group of criminals to cause thousands of pounds worth of damage and/or loss – all of which will eventually eat into your profit ratios. For example, it is not uncommon for insurance brokers to receive two or three phone calls in a small period of time reporting the theft of catalytic converters. Unfortunately, catalytic converters can be extremely expensive to replace, thus leading to a high loss ratio.
It is therefore beneficial not only for motorhome owners but also motorhome insurance brokers and underwriters to be aware of best practices when it comes to security. For example, if you know that there has been a spate of catalytic converter thefts you may want to make your customers aware via a blanket email. This could encourage them to increase security for their motorhomes, thus reducing the likelihood of them having to make a claim.
However, it’s not just current customers that you should try and help, as even new customers could end up having to claim early on in their policy if they are taken advantage of by fraudsters. Unfortunately, as online motorhome dealerships and listings have become increasingly popular the amount of risk involved in buying a motorhome has risen considerably. It is not uncommon for motorhome owners to find out too late that the vehicle they have purchased has been stolen or has remaining finance, resulting in their insurance policy becoming null and void.
Even small things that you may not have previously considered can also have a huge impact on your business, and you would be surprised at how abstract the catalysts can be. For instance, a recent article published in a motorhome magazine discussed a customer having issues claiming on their insurance after reversing into an object with their tow bar. The big issue here? The claimant had failed to let their insurance provider know that they had a tow bar fitted.
After this article was published there were reports that insurance brokers received numerous phone calls from customers letting them know that they had tow bars fitted to their vehicles. As a broker this can be extremely beneficial as it means that if some of your customers have inadequate cover you may be able to sell them additional protection. At the same time if your customers do have to claim in the future you or your underwriters won’t end up in a dispute.
As an insurance broker you know that customers who pose less risk are often rewarded with cheaper premiums by underwriters, however it’s not always easy to determine the risk of each individual. Outside factors often play a big part in keeping a motorhome secure, which is why even the safest customer can still end up claiming on a regular basis. As a broker it is therefore of the utmost importance that you keep motorhome security in mind at all times, thus helping you, your underwriters and your customers save money.