There are dangers in buying cheap policies.

News >>

With Insurance policies - you get what you pay for.

Falling premiums, aggressive competition between underwriters and the large number of insurers mean policy prices become cheaper. This is great for our clients but cost savings in the short term may prove costly later.

Ten years ago (March 2001) HIH Insurance collapsed with $5 billion in debts. They had a reputation for being cheap. Many of their policy holders regretted choosing an insurance policy on price alone.

All Companies should analyse the risks their business faces and determine the scope of insurance cover required. As your Insurance Broker, we can help you to do this. While value for money comes into the equation, it shouldn’t do so if it means less protection.

Insurance policies vary from company to company and as your Insurance Broker, we can help you determine how you wish to be covered. It should be remembered however, that in many instances a cheaper premium reflects a narrower scope of cover. As a consequence the premium saving may not represent good value at claim time. For instance, it is not just in the coverage offered but the size of the excesses, the sub-limits applicable and claims service.

Also building a long term relationship with a strong insurer will add value to the Insured’s business. Regularly changing your insurer should not matter in theory, but when negotiating difficult claims, loyalty can be helpful. But maybe your current Insurer has been taken over or re-structured. Perhaps they have lost their high Standard & Poors rating. Perhaps their claims department performed poorly in the recent catastrophic events.

Whatever the reason for making your decision on which Insurer, it should not be just price alone.  

Last changed: Jun 26 2011 at 6:57 PM


  1. None Found

Add Comment

Latest News

Finalists again in 2020

CPR Insurance Services was very pleased to be nominated again for this year's Insurance Business Magazine awards. Unfortunately the Awards night has been postponed until later due to COVID19, we very much appreciate the accolades this brings us. We have been nominated three years in a row now and won the the award the past two years. It was always going to be very hard to win three in a row.

read more

CPR Insurance Services Awarded Authorised Representative Insurance Business of the Year for 2019

Mandy and Robert Cooper were proud to receive the inaugural Authorised Representative Business of the Year from ANZIIF in the Australian Insurance Industry Awards for 2019.

We share this award with all our staff, Lauren, Guy and Sarah and thank them for their dedication in providing the best possible customer service. We also thank our clients who have made our business what it is today. We thank you all so much.

read more