Whether international private medical insurance (IPMI) advisers should move to a fee only model was one of the questions raised at Health & Protection’s third annual IPMI Summit last week.
A new feature of the 2024 Summit was feedback sessions where delegates broke off into workshop groups before returning to the room to discuss their findings.
From the stage, Gareth Absalom, head of global health at Cranbook Underwriting (pictured far left, next to Tim Galliver, head of business development at Cleveland Clinic), challenged delegates to consider as inflation increases, whether IPMI brokers should be charging a fee for their services, rather than getting a percentage of commission.
This was an issue raised for consideration by one of the workshop groups led by Absalom.
“Should we all be benefitting from that pain that the customer and the insurers are feeling when there’s inflation because we all sit back as our percentage rises as a dollar figure?” Absalom asked.
“Should there be a different way of taking fees?
“I know some work is done with a fee, but a lot of the SME work is done on a percentage basis. Should we now be looking to adjust how we work?
“Because I had a case where we had to increase the claims fund, so the retail broker said we won’t earn more than we earned last year. So that fund all goes to the insurer to keep the cost down.”
However the proposal was not widely recognised within the room.
Joining Absalom on stage, Marcia Reid non-executive director at Sherwood Healthcare (pictured far right, next to Nic Brown, director at FJN Growth Solutions), said IPMI advisers need to be able to look themselves in the mirror and feel comfortable about their charges.
“I would say if you can look in the mirror and be comfortable with what you’re charging the client whether it’s commission or fee, then you’re doing a good job,” Reid told delegates.
“And I would like to say most people in this room probably are there to do the best for their clients.
“We’re not charities but you have to be comfortable with yourself.”