Thursday, January 27, 2011

Group Insurance Schemes – why?

What is an insurance scheme?
Firstly, for those of you who are unfamiliar with the term, a Group Insurance Scheme is where an organisation with a group of “members” such as an association, industry body, institute, franchise group etc. set up a scheme whereby it’s members are encouraged to purchase their insurance policies from the scheme manager. Generally, the manager would be an insurance broking firm; who will in turn harness the groups combined buying power to negotiate them better coverage and lower prices directly with competing insurers. The benefits of any scheme increase as greater numbers of members participate, as the manager is able to leverage this greater buying power to achieve lower prices or exclusive benefits. 
 For example: A Real Estate Agency Franchise council may set up a group insurance scheme for franchise owners to purchase their business insurance packages and professional indemnity insurance policies.
What are the main benefits of establishing an insurance scheme through an insurance broker?
·    Larger buying power helps to reduce premiums without the need to compromise on quality
·    Insurance policies will be specifically tailored to meet the needs of your members which eliminates paying for unnecessary cover and helps to further reduce premiums
·    Provides an additional membership benefit for your organisation
·    Combined claims history helps to lower risk to the insurer and therefore assists in lowering premiums
·    Your insurance brokers service does not end once your members premiums are paid, we are available for the duration of their policies to provide risk management advice, and should a claim arise we will assist with lodging and following up the claim with the insurer. 
·    Depending on the size of your scheme and your requirements Coverforce Insurance Brokers will actively assist you in the promotion of your Group Insurance Scheme to your members. Some ways we can do this are; by creating marketing materials including brochures and flyers, through mail outs and publications, group presentations, conference sponsorships, etc.   

How hard is it to set up a group insurance scheme?
Establishing an insurance scheme is generally a very quick and simple process with no set up fees or costs over and above your annual policy premiums. Contacting a insurance broker like Coverforce who specialise in establishing Group Insurance Schemes is a great start as they will be able to walk you through the process and get you a great result for your members.
 So why wait, contact Coverforce today to find out how we can make your organisations buying power work for you.

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