Insurance Claims: Direct vs Adviser Support
Filing an insurance claim in New Zealand? Here's what you need to know:
Two main options: Go directly to your insurer or work with an insurance adviser
Claim process: Report incident, assess damage, review policy, decision made, payment if approved
Timeframe: File ASAP, ideally within 3 months (2 years for natural disasters)
Quick comparison:
| Aspect | Direct Insurance | Adviser Support |
|---|---|---|
| Cost | No fees | No fees |
| Expertise | Company-specific | Multiple insurers |
| Time investment | You do everything | They handle most |
| Advocacy | DIY | Professional representation |
| Claim success | Lower approval rates | Higher success rates |
Choose direct claims for:
Simple, straightforward cases
When you're insurance-savvy
If you have time to manage the process
Opt for adviser support when:
Dealing with complex claims
You're short on time
Facing high-value or contentious claims
Remember: File quickly, document everything, and understand your policy before making a claim.
Direct Insurance Claims
Filing a claim with your insurer in New Zealand? Here's what you need to know:
How It Works
1. Contact your insurer ASAP
Tell them what happened and send any evidence (photos, police reports, receipts).
2. Wait for review
An assessor will look at your claim.
3. Get a decision
If approved, you'll receive a payout.
Support Options
Direct insurers offer:
Online forms
Mobile apps
24/7 helplines
Chat support
But heads up: You might talk to different people throughout the process.
Pros and Cons
Good stuff:
Quick filing (sometimes just minutes)
24/7 online access
No middleman
Not-so-good stuff:
Less personal support
You need to know your policy
More DIY effort
Tips for Success
Read your policy first
Gather all docs upfront
Take damage photos
Keep communication records
Don't wait too long! Most insurers have claim deadlines. For cars, it's often 30 days. Natural disasters? Up to two years, but sooner is better.
Claims with Insurance Advisers
Insurance advisers are your go-to people for managing claims in New Zealand.
They're like your personal claim champions.
How Advisers Help with Claims
Advisers do the heavy lifting:
File your claim
Explain what's happening
Fight for you if the insurer says no
"We're your absolute advocate at claim time: we manage the process from start to finish and put your insurance to work." - Insurance People
What Advisers Do For You
| They Handle | So You Don't Have To |
|---|---|
| Paperwork | Fill out confusing forms |
| Disputes | Argue with the insurance company |
| Insurer talks | Deal with frustrating phone calls |
| Claim tracking | Wonder what's taking so long |
Most advisers take care of everything. They know the ins and outs and can speed things up.
Here's the big win: You're not alone. You've got someone in your corner who gets it and fights for you.
Comparing Claims Support
How Support Affects Your Claim
Your choice can impact your outcome:
Approval rates: Advisers often win. 78% of broker clients are happy with their service.
Payouts: Advisers can fight for more. As Rivers Insurance says:
"Our clients generally receive better policies and prices, than if you attempted to obtain those policies directly from an insurer."
Speed: Advisers know shortcuts. They've got connections and experience.
Stress: Insurance can be a headache. FoxPlan warns:
"Without an independent financial adviser... you can find yourself vulnerable to the company who you once trusted to be there for you."
Coverage: Advisers spot gaps before you claim. That's huge when you need to file.
Which Should You Choose?
It depends on your situation:
1. Simple claims: DIY might work if you know insurance lingo and have time.
2. Complex cases: Advisers shine here. They handle the tough stuff and explain the confusing bits.
3. Time crunch: Advisers save you hours. They deal with the paperwork and phone calls.
4. Need backup: If your claim gets denied, advisers know how to fight back.
Choosing Your Support Option
When it comes to insurance claims, you've got two main choices: direct insurance or adviser support. Here's how to pick the right one for you:
Comfort Level and Claim Difficulty
Your decision boils down to two things:
How complex is your claim?
How much do you know about insurance?
For simple claims, going direct might work just fine. But if you're dealing with a tricky situation or you're not an insurance pro, an adviser could be your best bet.
Time, Effort, and Costs
Let's break it down:
| Factor | Direct Insurance | Adviser Support |
|---|---|---|
| Time | You do it all | They do most of it |
| Effort | High | Low |
| Costs | No broker fees | No broker fees |
If you're a DIY type with time on your hands, direct insurance could work. But if you'd rather not deal with the hassle, an adviser might be worth the potential cost.
Special Situations
Got a spotty driving record or a low credit score? An independent agent might be your ticket to better coverage options. They can shop around more than you can with direct insurers.
"Independent agents can be a lifesaver for non-standard customers looking for affordable coverage."
Just keep in mind: Some big-name insurers don't work with independent agents. So you might miss out on a few well-known options.
Compare Insurance Options and Save
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Support for Different Insurance Types
Let's break down how direct insurers and advisers handle claims for personal, property, and business insurance.
Personal Insurance Claims
For life, health, and disability insurance:
| Aspect | Direct Insurance | Adviser Support |
|---|---|---|
| Application | Online forms, fewer health questions | Thorough health analysis |
| Claim Process | Self-guided on website | Adviser helps with paperwork |
| Underwriting | Limited pre-underwriting | In-depth pre-underwriting |
| Claim Complications | More likely | Less likely |
Advisers can be a game-changer for personal insurance claims. As the Thrive Advice Team puts it:
"Having a financial adviser by your side can give you peace-of-mind."
Property Insurance Claims
For home and auto insurance:
Direct insurers: Online forms and call centers
Advisers: Personal guidance throughout
Remember:
Know your policy inside out
Keep proof of ownership
Report burglaries to the police first
The Insurance Council of New Zealand (ICNZ) makes sure its members play fair with claims.
Communication and Resolution Speed
Here's how direct insurers and advisers typically handle claims:
| Aspect | Direct Insurers | Advisers |
|---|---|---|
| Initial Contact | Within 1 working day | Same day |
| Claim Number | Provided immediately | Provided by insurer |
| Point of Contact | Multiple staff possible | Single adviser |
| Paperwork | Customer responsibility | Handled by adviser |
| Liaison with Third Parties | Customer may need to manage | Managed by adviser |
Advisers often offer a more personal touch. Warwick Beard from TAL says:
"There is nobody else in the claims experience that offers the same service that financial advisers do."
This personal service can be a lifesaver. Take Jayani's case with AIA New Zealand:
Lost job during parental leave
AIA assigned a case manager
Set up virtual meetings due to COVID-19
Provided culturally appropriate mental health support
Offered job search help
Result: Jayani found new work after 5 months
So, what's the bottom line? Both direct insurers and advisers have their strengths. Your best choice depends on your personal needs and preferences.
Making Your Choice
Picking between direct claims and adviser support isn't always easy. Here's how to decide:
Know Your Needs
Think about your situation:
| Factor | Direct Claim | Adviser Support |
|---|---|---|
| Simple Claim | ✓ | |
| Complex Claim | ✓ | |
| Time-Pressed | ✓ | |
| Insurance Savvy | ✓ | |
| High-Value Claim | ✓ |
Conclusion
Direct insurance claims and adviser support are two different ways to handle insurance claims:
| Aspect | Direct Claims | Adviser Support |
|---|---|---|
| Process | You manage it yourself | An expert guides you |
| Time | Quick for simple claims | Longer, but saves time on complex cases |
| Expertise | Your own knowledge | Professional experience |
| Outcomes | More rejections | Better success rates |
| Cost | No extra fees | Might have broker fees |
Choosing between the two depends on your situation:
Simple or complex? Direct claims work for easy stuff. Get an adviser for tricky claims.
Got time? Busy? High-value claim? An adviser can help. As TAL's Mark Bullen says:
"An adviser can provide recommendations on the right amount of cover for your lifestyle, the best way to structure your policy... and how to navigate the underwriting and claims process."
Know your policy? If you're insurance-savvy, go direct. Not sure? An adviser can explain and fight for you.
Want success? ASIC found direct claims get rejected more. About 15% of all direct claims were rejected, and nearly 1 in 3 were withdrawn due to mistakes.
Choose what works for YOU. Your time, knowledge, and claim type should guide your decision.
More Information
Need help with insurance claims or finding a good adviser? Here's where to look:
Claims Process Resources
For handling insurance claims:
Insurance Council of New Zealand (ICNZ): Check their website for claim instructions, Fair Insurance Code info, and documentation tips.
Citizens Advice Bureau: Get free, independent advice on insurance and claims.
Chubb Life NZ: Their claims team typically responds within 48 hours once you provide all info.
Finding Good Insurance Advisers
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