More than one insurer's quote isn't a decision on its own – it's just a pile of paper. To decide, you need to line them up: the same rows, the same questions, in a clear table. That's the essence of benchmarking – and one of the main outputs of a broker's work.
- The table's rows: scope of cover, sums, deductible, limits, exclusions, claims-handling rules – and only then the premium.
- The lowest-priced offer often hides a difference in content – the table makes this visible.
- The decision is the client's: the table doesn't rank on their behalf, it makes things visible.
Why isn't it enough to look at the premium?
Because premiums are only comparable when the content is identical – and it almost never is. One quote includes glass breakage, another doesn't; one reimburses excavation costs for water damage too, another caps it; one hides a higher deductible behind an attractive premium. The "lowest-priced" option can easily turn out to be the most expensive one – at claim time. The table's first benefit is that it shows these differences up front, not after the fact.
The rows of the criteria table
The backbone: sums by asset group and the valuation basis (reinstatement value/actual cash value); the scope of cover by peril (fire, storm, water damage, burglary + add-ons); the deductibles; the sub-limits (cash, outdoor storage, off-premises, excavation); differences in exclusions; the protection requirements for burglary; and the claims-handling rules (notification deadlines, inspection practice). The premium row sits at the bottom of the table – so it's read in the context of the content. On the technique of reading policy wording: quick guide.
How is the decision made?
We go through the table together: I show you where the quotes differ and what that means in practice – the decision is the client's. Sometimes the lowest-priced quote is the right choice; sometimes a more expensive one, more precisely tailored to the company's risks, wins out. And sometimes the existing policy wins the comparison – in which case I say so plainly: when it's not worth switching. The next step, binding cover: next step.
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