The Broker

ROLE OF A BROKER

No organisation is immune to the type of accident or misfortune that may affect its profitability. It is the prudent company, which protects its assets and liabilities by arranging adequate insurance cover.

The advantages of insurance are many. It avoids the need to tie-up scarce capital in order to meet the potential losses. It eliminates the majority of risks associated with any business venture, and thereby encourages growth and development. Through insurance, a known cost is substituted for the variability of losses from year to year. In short, it provides financial security, stability and the ability to plan.

Having recognised the need for insurance, how can you determine that proper protection is being provided and at a reasonable cost? Do you really have the time and capability to select the right policy from the multitude being offered? Do you have access to all the market? If a loss occurs, can you be sure to present your claim in the best possible manner?

FFK is an entirely independent firm of professional insurance brokers. Our view of the insurance industry is from your perspective, that is, the consumer. In close liaison with you, we will develop an insurance program to meet your particular requirements. A successful strategy depends on prevention as much as protection. Therefore, an important part of our service is in advising ways in which risks may be reduced, or even eliminated, with consequent savings in insurance costs.

An organisation of our reputation naturally attracts staff of the highest caliber and that is reflected in the standard of service we provide. Due to technological advancement, insurance is becoming more and more complex, imposing greater demands than ever before upon the broker. Our response to this challenge is innovation, specialization and an increased awareness of our problems.

RISK MANAGEMENT & INSURANCE

 

A Question of Balance

In the modern climate of economic constraint, insurance is increasingly recognized as being of importance. But there are two opposite philosophies. One follows the theory that every conceivable risk should be insured and for liberal amounts, so as to permit little or no chance of a loss being uninsured. Where income permits such a broad program, it is, of course, a source of comfort, but there are questions to be considered:

  1. Does the purchase of insurance in liberal amounts tend to reduce loss prevention measures? If it does and losses arise, premiums will increase. Add premium increases resulting from adverse loss experience to the higher premiums for greater amounts of insurance because of inflation and it could be found that the cost might prove to be prohibitive. The return in value is certainly questionable.
  2. Does the absence of proper loss prevention measures have repercussions with insurers? In the same way that industry and technology have developed in recent years, insurance has also had to progress in parallel to keep abreast with rapid changes occurring. Consequently, when a risk presents an unusually high exposure, insurers expect, and in many cases demand, that effective loss prevention measures are taken before the risk is accepted.
The other philosophy places emphasis on stringent measures to prevent, or at least minimise losses. Insurance is merely effected to cover those losses which will occur despite a rigid loss prevention program. Such insurance may involve a certain amount of self-insurance through higher deductibles. But consideration must be given to insure against a catastrophic loss, which could affect the financial stability of the company. It is our philosophy at FFK to attempt to maintain a practical balance as to amounts of insurance, risks covered and measures of loss prevention. We maintain a Technical Services Department, which can provide the complete range of risk management services. It is our duty to minimise our client’s overheads without jeopardising their financial stability.

OUR INTERNATIONAL RESOURCES

In view of the complex insurance requirements of the modern world, we are fully aware of the importance of international connections. Through our network we have true access to all the markets in the world, including Lloyds, but marketing facilities are not the only consideration. Technical advice on loss prevention and risk management are equally, if not more important. Moreover, there is a free exchange of information regarding new developments between our associates and us around the world. This cross-pollination of ideas can only result in an improved service to our clients.

Through our correspondents we can provide a complete and total service for all of our clients’ needs.