With a storied history and a stellar reputation in the UAE, our priorities remain: Delivering bespoke insurance solutions to meet the individual, family, or commercial needs of our clients. Building this reputation takes serious effort, that is why our team operates with a goal of creating lasting professional relationships with our clients. We have built our reputation on trust by bringing clarity to our clients and always avoiding misleading or unclear insurance policies.
At Petra Insurance Brokers, our commitment to upholding the highest ethical standards is the foundation of our sustainable business model and our reputation in the UAE’s insurance ecosystem. Transparency is the name of the game. This goes for both the client and the sales representative and the core theme of our blog. Due diligence from our side and proper disclosure from the client are key to a healthy insurance relationship.
To identify what the client needs, we conduct a fact-finding process. Here is a breakdown of how we tackle issues such as non-disclosure:
- Capture relevant information that enables sales consultants to quantify the total amount of each need, the provision that already exists to meet that need, and the shortfall amount which must still be provided.
- Identify the client’s ability to afford or their available contribution to invest. This information is derived from a detailed analysis of the client’s income and of the outgoing value which is spent.
- Conduct a thorough review and analysis across the client’s portfolio to mitigate any deceitful activity.
- Ask the right questions. Our consultants know how to obtain important information by avoiding vague and general responses.
What are the benefits of our fact-finding process?
- Our affordability guideline is at 25% – 35% of the client’s annual salary, including bonuses. The correct affordability must be determined to make sure that the client can comfortably contribute until the end of the term.
- Our Life Insurance premiums are no more than 10% of our client’s earned income.
- Our consultants are accurately able to assess our client’s current financial standing. Most of our clients invest in medium to long term insurance policies. Sound financial planning is needed to consider the future changes in the client’s finances to avoid a lapse of the policy.
- Any suspicions on the client’s actions or faulty advice from our consultants is identified at this early stage.
What is your role as a client?
Clients are expected to:
- Fund signed policies until their maturity or until completion of the premium term. Nevertheless, savings and some insurance products have the flexibility to suspend contributions based on specific terms and conditions.
- Contribute in a sale beyond the lock-in period (Nil Allocation Period or Initial Contribution Period).
- Avoid non-disclosure of information, no matter how insignificant its implications may seem to the policy value.
What are the next steps in a client-broker partnership?
Once our fact-finding process is completed, we are able to recommend an appropriate product based on the client’s needs and their financial status. The recommendation is presented to the client, stating precisely why a certain product is the best choice for them. This means exploring the product’s key features, it’s possible advantages, and disadvantages that may arise after its implementation.
What if a client disagrees with our advice?
If our client accepts some, but not all of our recommendations, we may attempt to reason with the client. Under no circumstance, however, should our consultant change their professional advice that is based on sound analysis and hard data. It is important to remember that clients have the right to ignore advice and invest their money, regardless of our guidance. Nevertheless, we will continue to be adamant on what we believe is the right approach, regardless of our customer’s final decision.
Here are five ways we deal with this situation:
- Restate the advice given and attempt to reason for it.
- Explain the reasons why the client’s instructions may not be in his best interest.
- Express readiness to carry out the client’s instructions if the client remains undeterred about accepting our advice. It should nevertheless remain clear that the consultant does not endorse such a transaction.
- Record the advisor’s recommendations and have it signed by all parties for future reference.
- Discourage an “execution-only” transaction to avoid enacting fact-finding interviews.
How do we uphold specific standards?
Ethical standards in the workplace are not only critical to preserving the trust on which insurance transactions are based but as well as the public’s trust in our industry as a whole. As a result, Petra Insurance Brokers are committed to setting, maintaining, and supporting the highest professional and ethical standards within all of our operations.
To uphold such standards, Petra requires all members to adhere to its Code of Ethics. Our entire team is required to comply with the spirit and the letter of the Code which includes:
- Acting with the highest ethical standards and integrity.
- Acting in the best interest of the client.
- Providing a high standard of service.
- Treating people equally regardless of age, gender, race and religion.
At Petra Insurance Brokers, we strive to meet our client’s needs and at the same time be in a sustainable position for future growth. After over 50 years of being in business, we do not engage in transactions that could compromise our legal status, ethical standards and reputation.
The insurance industry is built on trust and as a show of our commitment to uphold transparency, we want to open the lines of communication with you. Speak to one of our experts today by email or connect with us over LinkedIn to take the conversation further.