Sterling Knight COO Blog

Interview With Ulli Krell - International Field Operations Manager at Chubb Insurance

 
I had the opportunity to interview Ulli Krell of Chubb Insurance recently and interviewed him on Chubb Masterpiece - the  homeowners and householders' insurance policy designed to protect the property of high net worth individuals.

What are the 3 most important things to look out for by high net worth individuals when searching for a provider to insure their most treasured possessions?

Look for the three C's: Coverage, Claims and Choice—from a provider with financial stability. 

• Coverage that suits your lifestyle -  The first thing to think about is what coverage you require. Work with a provider who understands your risk profile and can recommend the best types and breadth of coverage for you—with limitations sufficient to your exposures. Look for coverage designed expressly for high-value homes and their owners. Select coverage that fits your life — coverage that goes beyond the basics. For example, your home is totally destroyed in a fire. Will your insurer pay additional living expenses necessary to maintain your normal standard of living while your home is being rebuilt? 

• A policy that gives you coverage choices - Look for a provider that offers a variety of coverage and claims options.  Can you select coverage types and limits that best meet your individual needs? Will you have the choice of vendors to repair or rebuild your home, auto and possessions or will you be told who you have to use? Can you rebuild your home to present-day standards? 

• Claims service that consistently gets high marks - Fast response, fair claims settlements and no surprises when it comes time to file a claim.  The ultimate test of any insurance company is how it handles claims. How quickly will they respond—and settle a claim? How much will they actually pay?  Will they pay claims willingly, or will you have to haggle for it? In other words, will they be there for you when you really need them? Select a company whose claims service consistently gets high marks.  Look for:

1. Speed of response: How long does it take to respond?  What happens to you in the meantime?
2. No-haggle claims philosophy: Is payment of your claim as easy as your purchase of the policy? It should be.
3. Excellent reputation: Don’t take the provider’s word for it. Talk to their existing customers or ask your broker about the provider’s reputation.

• The financial stability to be there when you need them most - Does the provider have the financial strength and security to meet their claims promises—now and in the future? How do they score with independent rating companies?

I’ll throw in one more C:  Care.  Does your provider care about your loss and have your best interests at heart?  Do they go above and beyond to protect you from loss?  This is probably the last thing you think about when selecting an insurance carrier. But, it matters when you need them most. Select a provider that will be with you every step of the way. Select one that cares.

From your experience what are the 3 most misunderstood things about insurance for valuable personal property that high net worth individual clients should know about? 

#1 Risk: Not having the coverage you need, but don’t know you need... 

• E.g., Personal Liability: You don’t have to be a millionaire to be sued like one. Jury verdicts today can be exorbitant… in the millions. Even the cost of damages that may appear minor at first may actually end up being quick costly over time.
  • Are your personal assets protected from a lawsuit? Are your policy limits sufficient to your risks?  Does coverage extend to your family members? Others?
  • It’s not only what you have today that is at risk… but also future earnings and assets.  Look for a provider that understands how to assess your risks and exposures; one that can help you select liability limits commensurate with your risk profile. 

#2:  Not having the coverage you think you have, at the time of a loss... 

• Avoid surprises:  At the time you file a claim, you don’t want any surprises.  You have top-tier coverage with a mass-market provider. You pay your premium on time. You think you’re set.  But after you file your first claim, you find out that you don’t have the coverage you thought you had. To avoid this scenario, ask for an “agreed value” auto policy and a “replacement value” homeowners policy.
  • With agreed value, you determine up front what your valuable article is worth at the time of loss. It's like settling the claim before it happens.
  • Market value is not the same as the replacement value. A $1 million home may cost $1.2 million to replace. Will the insurer pay the cost to repair or rebuild your home after a covered loss, even if the cost to do so is greater than the limit listed on your policy?

 #3:   Thinking that all insurance companies are alike… that any company will do. 

• High net-worth individuals need broad, responsive coverage designed expressly for high-value homes and possessions with provisions you won't find in standard, mass-market policies.

 They need coverage that suits their lifestyle. A policy that gives them choices. Service that consistently gets high marks. And no surprises when it comes time to report a claim. 

And, the fact is, though, not all insurance companies can meet those expectations.

Chubb can.

For more than 125 years, Chubb has been building a reputation as one of the world's preeminent insurers - providing innovative coverage and unrivaled service for owners of fine homes and possessions.

Five Persons Jailed for Insurance Fraud

Staged vehicle accidents resulted in 5 persons jailed for insurance fraud between 2 to 6 months, reports the Singapore press

Singapore Manufacturing Output up 39.8%

Manufacturing output in Singapore was up 39.8%, with key areas of growth as biomedical (166.7%), precision engineering (33.9%) and electronics (23.1%), as published in the local news:

Source:Article in Channel News Asia

Medical Insurance: Understanding the Difference between As Charged and Per Disability Insurance

The world of medical insurance can be a bit confusing for many people.  I find that one area that stands out though, is understanding the difference between “as charged” and “per disability” insurance.  Which is right for you / your company?  Both have their pros and cons, but I feel a bit of an explanation will help clear things up a bit here.

“As Charged” Policies

I feel one of the most beneficial types of programs out there are “as charged” policies.  These offer a number of benefits.  For instance, you will find that this type of policy will actually pay out for the entire amount, subject to an annual limit, charged by a medical service provider.  To illustrate this point, let’s look at a scenario.

If a patient was hospitalized once in 2010 and the hospital was to charge them SGD20,000 for medical treatment and surgical fees for an illness, an “as charged” policy would pay the full amount provided it remains under the annual limit of the medical insurance plan.  This ensures that those covered by these policies are not stuck paying the “gap” charges that can sometimes occur in situations where benefits are sub-limited or are subject to a "surgical schedule", discussed further in this blog.

As charged policies are excellent options for many people, but I would like to be clear on one point.  They are more expensive than a “per disability” insurance policy.  What are “per disability” policies?

“Per Disability” Policies

I feel that “per disability” policies are certainly worthwhile investments, but they differ considerably from other options on the market. In a per disability situation, the policy is less expensive than with an as charged policy.  However, it is also far more limited in scope.

With such a policy, patients are limited in terms of how much they will pay out per different types of surgeries, as well as how many surgeries a patient can have during a certain timeframe.  The low surgery limit and limited surgical schedule found with these types of policies can limit their usefulness at times, but the fact does remain that they can be used to save money.

For instance, if there were a surgical sublimit of SGD7,000 from the insurance plan, and 100% is payable of this limit under the "surgical schedule" then the patient in the above scenario would be paying a minimum of SGD13,000 out of their own pocket, or would have to purchase "major medical" insurance to make up the difference. The surgical schedule is a list of ailments detailed in the insurance policy which further sub-limits the surgical limit. If the surgical schedule indicates a lower payout percentage (quite possible if it the ailment is a minor ailment), the SGD7,000 payout would be further reduced.

In the end, both offer benefits, but both have detractions as well.  I suggest comparing both to your particular situation to determine which is the right choice for you. Also, on corporate plans, it is important to describe the plans and limits of the plans in detail to employees, as, in the case described for "per disability" above, the insurance provided may only be a partial indemnity.

 

Singapore Inflation at 3.8% in November 2010

Statistics published in an article in the local news indicated that Singapore inflation stands at 3% in November 2010, year on year. This was due to a 9% increase in transportation costs and an increase in housing and food costs.

Source: Straits Times Interactive

Compulsory IVF Insurance Limits May go up

The Ministry of Health is calling for tenders to increase the daily payout of insurance for IVF babies that have to undergo additional treatment. The current payout is SGD100 per day and the proposed payout SGD300 per day Read more from the Singapore Government's announcement and the press article for more information. 

Survey Shows that Most Singapore Travellers Do Not Buy Travel Insurance

A recent survey conducted by Aviva shows that 71% of Singapore travellers do not take up travel insurance.

Medifund disbursements up 9% in 2009

Medifund, an endowment fund set up by the Government to help needy Singaporeans who are unable to pay for their medical expenses, paid out SGD64m in 2009, according to statistics released by the Government of Singapore on 9th Dec 2010 

Press Release: Medifund Helps More Needy Patients

Singapore GDP expected to grow 4%-5% in 2011

Economists predict that Singapore GDP will grow 4% to 5% in 2011, with electronics expected to contribute 25% of this growth. In 2010 year GDP is expected to grow 15% and the slower expected growth is tempered by inflation. 

Analysts confident S'pore will achieve 4-5% GDP growth in 2011 Source: Channel News Asia

Singaporeans Top Savings Goals is Retirement

A recent survey by HSBC shows that surveyed Singaporeans' top savings goal is for retirement and 37% are considering the purchase of a retirement income product to support this, reports the local news.