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Narrator  00:00:02 

In this special episode of Insurance Business TV, we have an expert New Zealand Power Panel discussing what you need to know when it comes to rising customer demands and how to address them.  

Danny Wood  00:00:14 

Hello, I'm Danny Wood, News Editor of Insurance Business and welcome to Insurance Business TV with the second of our New Zealand Power Panels. This time we're taking a look at how brokers can deal with rising demands from customers. Evidence from recent surveys suggest that increasing demands from customers and now one of brokers biggest work challenges. Once again, we brought together senior industry professionals to look at this Cedric Suifua is Client Director for the Pacific Practice at Willis Towers Watson. Cedric is in Auckland. Mikaela Watts is Senior Broker for Business Insurance Limited. Mikaela is in Christchurch, and Olivia Chisholm is Southern Regional Manager for PSC Connect. She's also in Christchurch. Welcome to all of you. And Olivia, let's start with you. Can you give an example from your daily work that demonstrates our these customer demands have have gone up compared to years past? 

Olivia Chisholm  00:01:10 

Absolutely. The biggest change I've seen is that meetings with clients are taking longer than they used to, they're asking more questions and want to be more informed about their insurance purchase. Some examples of questions could be they want a better understanding of the policy response and limitations, including whether any exposures of gaps can be can be purchased or not. They want to ensure that the policy provides the right coverage for their for the contractual obligations, and the like. And also customers are reviewing options which offer them premium savings, so that in their view, there's more bang for the back. Examples of this would be increasing excesses and maybe removing optional extensions where there's little exposure and the clients happy to self insure this risk. That's where we've Yeah, longer meetings basically with clients. 

Danny Wood  00:02:06 

Yeah. And what about you, Cedric? How are you experiencing things with your clients? 

Cedric Suifua  00:02:10 

Look, the look the last time the most challenging, you've got your boat yacht post, Auckland Flood Cyclone, Gabrielle combined with the flow of challenging economic conditions, post COVID, high interest rates in and all these things are making it really, really tough for clients to really change the conversations that we've had with clients. And as an example, for many of our clients, we're pushing insurance for more clarity around pricing and underwriting decisions. So spending more time on our submissions. And it's significantly more detail around mitigating underwear concerns. I mean, this is the value of having strong information for our clients. Got some type clients out in the Pacific we're underwriting system want to touch it and begin spending so a lot more time applying the more science based approach. And we find that a bit of information was given the underwriters are more likely that we're able to get better results for our clients, and all of the above and pretty much edit to the volume, which is why it's getting a lot more challenging for us as brokers. 

Danny Wood  00:03:14 

And Mikaela, you were saying earlier that customers just want everything now these days.  

Mikaela Watts  00:03:20 

Yeah, I think they just, they just don't want to wait around for things anymore. They, they've got time to talk to you. So you should have all those answers at your fingertips straight away. And one thing Cedric was sort of talking about the interest rates and things one thing wait really noticed, as you know, people used to put things on their insurance on funding just to get their cash flow more evened out, and we're saying loads more clients questioning the interest rate, and they're on those and I don't recall clients ever asking that in the past. So that sort of bank bought a new one for us and explaining to them how that works. Because they can't they don't really a lot of them don't get that they're not borrowing the money directly from the barking house or wherever and saying I don't pay extra as with the direct insurance, it's like you do they just don't tell you about it. So explaining there's just so much more behind the money of it nowadays. I don't watch I've not seen before. 

Danny Wood  00:04:17 

Yeah, and I guess the evidence that customers are getting more picky or one big piece of evidence was a survey that we saw from a company called javelin, they talked to about 500 brokers and they ranked I think affordable insurance and as their top challenge the unaffordability of insurance but rather than that cats this increasing customer demand came in at number two. Is that survey a surprise to you? First up, I'll ask you and in terms of the sort of service you're providing with your customers these days, where exactly are they getting more picky? Mikaela, let's let's stick with you. 

Mikaela Watts  00:04:54 

Oh I'm not at all surprised by it. I don't know if they are getting more perky. I think they just insurance. I think it was three or four months ago, you know, the supermarkets were the hot topic. And lately, it's really been insurance and you're seeing it everywhere. It's in the paper, it's on the news. It's on base buckets and parent pages, everybody talking about how they're remarketing. And I don't think that I'd be shocked if it hadn't come up as a thing that people are talking about. But I think it's actually good because there is a lot more discussion around it. Probably my concern about the news than the things that you're saying is that there's incorrect information then coming out with that. You know, you want your clients to ask questions, and you want them to understand what it is that you're doing. That's the service that they're paying you for. But when the media is saying, oh, you know, you could just go out and buy a fire only cover on your house, that would be quite helpful if that was actually real. So you know, you it's great that it's a topic, but I don't and I don't know, really, I mean, I think the brokers are under pressure, but I think the insurers are under pressure even more. And I think, from my own perspective, I sort of start starting to say that they're all on the busy olympics full time. And that's becoming. It's not only them, everybody's busy. And I think as money gets harder, and that people are really pinching on that dollar more, you just got to be more on the ball with what you're talking to people about. And I think it's great that people are actually starting to take notice of their insurance. And that's actually been talked about, because it's been this like, Oh, we don't discuss that for such a long, like so, so long. I really like it, I think it's great. 

Danny Wood  00:06:46 

That is good that people are more open about talking about insurance, because it was a bit of a dirty word. Olivia, let's let's bring you in here. Are you surprised by this survey? And are you finding that there's particular areas where your customers are more picky than before?  

Olivia Chisholm  00:07:01 

Absolutely, no, definitely not surprised by the results of the survey, I think you'd have to be in a different industry. Today was going to be surprising that customers were I'm seeing it as customers want to ensure that they're getting the most out of the premium spend. So I found that there's more that they're claiming on smaller losses where in the past, they wouldn't have bothered with insurance. Mikaela, you know, touched on the supermarket prices and things like that. So with the cost of living increasing year on year, clients are definitely looking to recoup their costs or more of the costs. Also the timeframe that the claims process is front of mind of the client, so they don't want to be out of pocket any longer than they need to be. So the time the timeframes that the claims are occurring, as you know, they want to make sure that the insurer is you know, getting getting it finalized and paid on time. I've also seen they want to investigate different options available to them in respect of premium payments. So increasing costs, with costs increasing across the board, they don't necessarily have the funds to pay the full annual premium upfront. So alternatively, they could use that money, that money could be utilized better elsewhere. So we're seeing clients more selective as to where they spend their money. So I don't think it's picky as such, but they're just being more selective being a bit choosier about where they spend, where they spend their money, and whether they utilize other options. 

Danny Wood  00:08:24 

And Cedric What about you surprised by the survey? Or not like your colleagues? 

Cedric Suifua  00:08:29 

Ah no, not at all? I think I agree with Olivia and Mikaela, no surprise at all. I mean, within the world that we're living in today, in the resources available online, all clients have access to knowledge now to a lot of them have a fair idea. You know, all costs increasing and majority of businesses are looking at alternative solutions to help reduce those increases. But increased costs is a key concern that our clients have to three important that I think comps that really important that we have good communication to our clients, so that they understand where these costs are increasing, and why what's happening in the insurance market, what's what's happening, that's having a large impact. So all those things are really, really helpful. Other picky areas, you know, outside of cost, cost being one of the main ones, you've got your service, he will claim response times, just as an example going going back to my Pacific clients. And there's a real very, very, very big labor challenge was labor shortage on Pacific. So you know, there's in this one particular nation, there's a fair amount of investment in that nation and there's just not enough men on men, men or women on the ground to be able to provide the underwriting service that we need then so there's a flow on effect by its slow quotes and, and all that sort of thing that's having an impact. So outside of the costs, you've got your service level, areas in response times their clients are a little bit picky of.  

Danny Wood  00:10:01 

Let's stick with you, Cedric, because we're just moving on to a different topic. And this one has to do with how you guys actually work. And whether you've changed the way you work in response to these rising customer demands. So, Cedric, are there a couple of ways you've changed the way you go about doing things? 

Cedric Suifua  00:10:18 

Oh, absolutely. In terms of changes and the trust, it's going to be the same with there'll be a, Mikaela, we've always striving to be better, and to better understand our clients. And as I've seen, in the previous question, it's really important that we understand our client's risk profile and what's happening out in the in the insurance market. And we'll get as an example, you know, with the increased costs for natural disasters, or nicop, we're having to look at alternatives. And I think we've mentioned this on our previous, previous show where parent metrics and how we're looking at alternative solutions are out, compared to a traditional market. But sometimes, you know, the, we're looking at the simplified options, you know, look at Laso, limit adjustments, deductibles, and a whole range of bespoke policy variations. You know, for one particular client, we're able to pick them up, one because as I said, before good comes to understand the insurance market, and what's happening in the natural disaster area in the Pacific. But what we did differently is, we apply more of a science based approach to how we approach this risk, risk, and advice on potential options for the client.  

Danny Wood  00:11:31 

Olivia, you were telling me earlier that more of your customers are driven by this desire for the best deal is that in some way conditioning, the way you're going about your work? 

Olivia Chisholm  00:11:41 

Absolutely. So forefront is the client getting the best deal possible for the appropriate coverage, so ensuring the remarket of the client's program, you know, which is done generally every two to three years will provide them with the confidence and assurance that you're providing this to them. Making sure the insurer has the appropriate and relevant information is important as well as if they don't know something, they'll automatically think the worst and provide you with terms based on this. Doing a proper needs analysis with the client will allow you to collect and collate the information. And the insurer will then be in a position to provide you with the most competitive rates, or terms, they are able based on accurate information, which is ultimately the best outcome for all involved. Also, I've found that providing the client with all the details of the policies upfront, it's really important. If clients are informed and provided with realistic timeframes, they're generally happy and more understanding. So anticipating the questions and providing them with this information upfront will save time and angst in the long run. So just changing you know, being proactive with the client, having a proactive line of communication with the client and and making sure that they know that they're getting the best deal. You Yeah, it's really when we do that.  

Danny Wood  00:13:05 

Yeah, so proactive, avoiding angst. What about you, Makayla? How have you changed some of the ways you're working?  

Mikaela Watts  00:13:11 

Well, so we're probably all kind of really doing the same thing. And on top of it, wishing we had more hours in the day to be honest. Like think it's coming to a very big heat on the other side of the industry at the moment is the fact that we've who's actually not enough people, there's not enough people who are qualified in the industry, there's not new people coming in. It's it's and I think that's making it even harder. Yeah, that's hard to get good staff. So the when you're trying to encourage you, somebody leaves, you're trying to replace them. And we're massively in that situation ourselves, we've had someone go on maternity leave, and we're low. We just try and wing that for a bit and see what happens. And, you know, you've got someone going away for a couple of months and the workload increases with it and there's just sort of never enough hours and you're trying to do everything that Olivia and Cedric concede and every client you're going out and talking to them where it used to be sort of like I am going out to see that I'll just put these things together quite quickly and you always knew what to take and it was the same kind of thing. All of a sudden you're spending actually hours or even a couple of days getting ready for the appointment that used to take half an hour and these are so much more involved but I think marrying saying that I think clients are actually starting to see that value when you're going to a meeting and you're not really sounds terrible but you're not flying by the seat of your pants but as so much as you probably did in the past and you really prepared you're going out there were different options on all different things and you know, if you had those six years we could do this and it could save you this and I thought you know that they at the end of the day they're paying us for our service and I think it's great that it's actually fully been actually we're actually supplying that service now and I I believe that that's why you know a lot of people are going to the smaller parking houses like you know, like yourself Olivia with PSC with the smaller hubs and advisor nets and those things where the paper when those businesses, that's actually what they want to do, they've gone away from the bank, corporate and that and the smaller, smaller office so that they just want to go back to their traditional service. And I think people are really appreciating that at the moment. 

Danny Wood  00:15:17 

You brought up a lot of good points, they're the sort of an intensity of your work is increased, and you've got this talent crunch to deal with sometimes, let's stick with you, Mikaela, I guess in there setting customer expectations becomes very important. How do you do that? 

Mikaela Watts  00:15:32 

I always tell my guys to it's like going to Disneyland, you know, tell them that's going to take five days and when it's going to take tau and so they're start when things come really quickly, you know, but I think it is actually just about managing how you're going to do something for a client and you're adding a new vehicle on that's great, I'll do that for you. I have that paperwork tell you whether, you know by Thursday or something like that. So when they get it on Wednesday, they're like Rush is good. It's not rocket science. But people want to know, don't say, I'm going to get it to you tomorrow, that's not going to happen. If it's going to be a week tell people. And if it's actually going to be longer when you get to your week and you still haven't gotten an answer. Let them know, keep them in the light. Clients are happy. It's like Cedric said all the way through as long as you communicate with them to help them understand what's going on. A lot of your clients I think don't realize what we have to do to get a quote for something. And I think sometimes explaining that I had a client the other day and he came in, he's like, you know how to go with the remarket. I was like, great I approach to leaving insurers and this base just stopped doing well. And I think when they realize how much it goes into what you're actually doing, they realize that there's there is a lot of time involved in it. So I think just managing their expectations is real key. 

Danny Wood  00:16:48 

Olivia, what about you? Is that also key? You're just telling them what you do is it's a good idea, isn't it? 

Olivia Chisholm  00:16:53 

Absolutely. Yeah, I agree with all of my Kayla's comments there, it's really important. And I've, you know, said here that I think it's setting client or customer expectations is really critical aspect of our role as a broker. One way is in respect of what they should anticipate in the coming year in respect of budgeting for their premium costs, so that we should be doing this as early and as often as possible throughout the year, commercial clients have budgets as well. So if we can provide them with some insight as to where they should be projecting costs, especially if it's definitely going to increase, then they will be able to budget appropriately as surprised customers, not the outcome we want generally. And then on the other side of that with the claims process, as well as setting client expectations at the start of the claims process is really important. I've always said, our job is not to be a postbox for the insurer. So we need to as the as a broker be actively participating in providing assistance and support to our customer at claim time. And we should be providing feedback to our customer if we think that a certain exclusion is going to apply, or if coverage is actually just not provided for that type of loss. Ideally, the client shouldn't be shouldn't be surprised from a declare nature from an insurer. And hopefully we've provided the information to the client at the start of the claims process. The more informed we can keep a client the better the outcome for all. client expectations is huge in all respects of, you know, Mikayla was mentioning about just getting an endorsement to a client. If we can see a client expectation and always speaks of our role, then we're going to hit the client. Well, not a surprise, but not a grumpy. 

Danny Wood  00:18:39 

Let's let's keep the grumps away if we can, Cedric, coming to you in position number three there, you were telling me earlier that early warning is is a pretty important part of how you set expectations 

Cedric Suifua  00:18:51 

I think Olivia and Mikaela pretty much answered the question. It's an entirely mean, look, if we can get to our client early, they can make a decision. Obviously, they've got people behind them could be an interested party. So it's really important that we get there to our clients early. I think Olivia also mentioned that anticipating and what the markets, how are they going to respond. And I think that's the value of knowing the market having zero understanding of a particular patient client profile. So knowing all these things does really help them with when we're setting the expectations for our client. But I mean, I agree 100% With what Olivia and Mikaela is saying. Very important part of it transparency as well. But yeah, totally agree. It's really important that we get there early to work right. 

Danny Wood  00:19:38 

Okay, thanks, Cedric. I've got a final question for you all. This is a an exciting one, pitch yourself trapped in an elevator. And you're there with a colleague who's really struggling to sort of come up with ways to deal with all these customer demands. Olivia could you give this a colleague of yours some quick advice before the elevator starts working again?  

Olivia Chisholm  00:19:59 

Well it has to be quick advice. I'm hoping it's just between floors. But basically what I would say is really have a face to face conversation with the client. Or if that's not logistically possible, at least a phone call, I find we, we shy away. And we hide behind emails a lot. And we have to do emails for legislation and regulation and whatever else. But I think having a face to face conversation is really important. Clients want to be heard, and they want to know that you understand their business. And by doing all of this will help you build trust with the client, which is ultimately the outcome you want to achieve trust in the client. 

Danny Wood  00:20:36 

Cedric, what about your elevator pitch? 

Cedric Suifua  00:20:40 

Three really quick and easy things one Hemis strategy. Olivia mentioned, every market how often you read market, what you're going to do you already know your client. So you should have an idea of what to do with your second one would be understanding the market upskill make sure they are up to date with what's happening in the market that we can provide good communication to your client. And I guess the last one was pretty much said as you know, the old KYC "know your client", know your client, their risk profile, what their expectations that what's important to them, then it makes makes it a lot easier to keep your client happy. 

Danny Wood  00:21:14 

And Mikaela, you're stuck in the lift with this colleague who's struggling, what would you offer them? 

Mikaela Watts  00:21:18 

Or clearly I'd give them all Olivia and Cedric's stuff, because they did really nailed it. The other thing I think is actually just telling someone struggling, just go back to basics and keep it really simple. Don't overcomplicate what you're doing. And remember that you do insurance your client doesn't and that's why they're talking to you. So be the professional and remember, you probably know more than you think. 

Danny Wood  00:21:45 

Well, thanks very much and thank you all for your time. And that wraps up this Insurance Business New Zealand Power Panel looking at how to deal with rising customer demands. Thanks to our panelists, Cedric Suifua is with Willis Towers Watson, Mikaela Watts is with Business Insurance Limited and Olivia Chisholm is with PSC Connect. Thanks for watching Insurance Business TV. Bye for now.