Cobra Network Compliance: Statement of Demands and Needs

Firms do not always give the right level of importance to Statement of Demands and Needs. Reference to a clients’ demands and needs should not be a throw away comment, they are the reason why a client is buying the insurance contract. There is flexibility in how demands and needs are presented but understanding what your client wants from their contract of insurance and ensuring this is documented is fundamental to demonstrating why the proposed policy meets their requirements.

The importance of Demands and Needs Statements

The intention behind a statement of demands and needs is to ensure that customers are better informed, and firms are providing products that meet their needs. The sale of a contract of insurance must always be accompanied by a statement of demands and needs. It is important for firms to obtain information from their customer enabling them to fully understand their customer’s requirements. This process must take place at the inception of the policy and again at renewal.

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