Is it a good option to pass my insurance through a bank?

 

Today we would like to talk about the reasons that lead people to change their insurance with their bank, as well as to assess whether it is a right or wrong decision. How it can affect the service and what advantages can be obtained, beyond mortgage insurance.

The banking practice of offering mortgage insurance

Banks have had some difficult years to obtain profitability, which made them start offering insurance: first linked to mortgages, and then contacting clients to offer them alternatives in other policies.

Something that bothers the Insurance Brokers Associations is the practice of bank personnel going into their clients’ accounts to see when their insurance policies are due and, knowing the amount and the insurer, offer alternatives. We find it difficult to understand how there is no interest in analyzing and investigating this practice, since, in our opinion, it compromises the privacy and confidentiality of information that perhaps we would not like other people to know.

How does this alternative affect my coverage?

To answer this, I think we must put ourselves in the banker’s shoes: their objective is to get the policy to pass with them. To do so, and knowing what the client is paying, is to offer him a price reduction. But does this cost reduction translate into a limitation of coverages? The reality is that, on many occasions, this is the case.

An example: a client contacts us indicating that the bank offers him a car insurance 15% cheaper than ours (from 400 to 340 euros). When we ask him to be able to analyze the proposal, we see that:

  • The assistance offered is the basic default one, limited to 100 km towing, while the current one is unlimited.
  • They have taken away the replacement vehicle, when it is a car that the customer uses every day,
  • They have not included the car’s extras, with the risks that this entails in the event of a claim.

Fortunately, this client trusted us, and what at first was a complaint, served to evaluate the guarantees he had and finally he did not make the change. But, what happens to all those people who trust the person who attends them at the bank, and change without evaluating the small print that is so important in insurance?

mortgage insurance

 

Does it improve the service I receive when I pass the insurance to the bank?

The trust you place in the bank when you change insurance policies with them, you need to know what it is due to. Let’s explain: the “manager” of the bank is a nice person who helps us with our usual bank account transactions. But does he also know about insurance, will he help me when I have an accident at home, with the steps to be taken with the loss adjuster, guilds, etc., will he proactively check how the renewals are coming along to assess adjustments against what the company is proposing?

We are going to explain the 3 essential services we provide at PIB Group Iberia, and compare it with what happens in the bank:

  • Specialization: we are dedicated solely to insurance, and this allows us to know in detail the differences between insurers and coverages. This allows us to provide value from the moment of comparing policies, before contracting, as well as afterwards in the event of queries or claims.
  • Defense of the insured: our job is to defend the client when he has a claim. This means that the client notifies us and we start working with the company to solve the problem, the claim. When you take out an insurance policy with the bank, you are the one who must take all these steps, since the “manager” who has sold you the insurance policy will not take these steps on your behalf, as we do.
  • Insurance review: we do not allow the insurance company to turn the bill it wants at renewal, but one of our tasks is to be aware of how the renewals are coming in order to try to adjust them. We cannot decide what the renewal price is, but we can put pressure on the company to moderate increases.

Final considerations: what is the best decision for my interests?

We can understand that it is convenient to have the insurance in the bank, but nowadays, if you are interested in having your insurance in an application, we also offer this service so that you can carry your insurance in your cell phone, with the difference that the service you receive is better.

We have not talked about prices, but here is a link to a news item based on comparative studies, which shows how life insurance is between 30-35% more expensive with the bank than with an independent insurer.

If you want to receive more for less, we recommend that you contact a professional insurance brokerage. Also, don’t be told that either you pass them an insurance or they will start charging you commissions, since with the rise in rates, any bank has stopped charging commissions.

PIB Group Iberia will be pleased to assist you if you are looking for good value for money and good service when you have an incident.

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