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The following interview with Kim Ridley, Q Report National Sales Marketing Manager, was published in the February edition of the Jewellers Trade Magazine.
6 Reasons why Home Insurance fails when it comes to jewellery.
Kim, you use the term ‘agreed value policy’ in our discussion. What does this really mean?
Agreed value means that the dollar figure shown on your policy is what we would pay out in the event of a total loss.
I read in your brochure Q Report promotes a 150% policy. What does this mean?
Step 1 Q Report provides you with an agreed value policy. However, even if we were to pay out the total insured amount to replace the item of jewellery, there might still be a shortfall due to price increases and fluctuating exchange rates. When this happens, this clause kicks in, meaning that at our discretion, we can and will pay up to an additional 50% on top of the sum insured shown on the policy document to assist in helping the customer replace the jewellery again.
Why would a jeweller want to offer Q Report jewellery insurance as a service in their business?
Every successful jewellery retailer wants to hold their customers from cradle to grave. If a customer has a jewellery loss and let’s use an engagement ring as an example - the jeweller cannot afford to lose this customer.
Q Report is the only jewellery insurance product that will make every effort to ensure the Q Report certified jeweller has the first opportunity to repair or replace the lost or stolen item. We have been operating for almost 10 years in Australia. Only 3 % of claims involved customers asking to go to an alternative jeweller while 97% of claims are settled with the original Q certified jeweller.
We are going to embark on a survey as to what percentage of customers have had a positive experience with their home insurance company that involved a jewellery claim. Anecdotally, we would be surprised if 25% were happy. Speak to any jeweller - you only hear nightmares.
Kim, that’s saying most people are left frustrated and angry. Wouldn’t we hear more complaints?
The sad part is the consumer is often scared to speak up. They don’t know their rights and just follow the insurer’s instructions. Let’s remember home insurance’s number one aim is to save money. The original jeweller will probably never see their customer again, as no one contacted them. On the rare occasion when the original jeweller is asked to do a replacement quote, they either never get the claim or the settlement figure is dictated to them by the insurer at a ridiculous price. Clearly the home insurer’s preferred supplier has underquoted because a) they are estimating on a much lower quality item than what was originally purchased, or b) they are banking they can sell the customer something else, so the settlement figure doesn’t really matter, it’s just a retail spend.
Everyone always says watch out for the small print on home insurance. What are we missing?
They normally mean read the terms and conditions. It’s hard because of the language used - this is true even in our contract. However, our team at head office and the team on the road are always happy to help explain it in plain English.
The one thing that we do like to point
out is the “Wear and tear” clause on all jewellery policies. It is important for jewellers to check their customer’s jewellery and make them aware that in the case of a loss an insurer both home insurance and Q Report can reject the claim on this basis.
Jewellers have told us that they get so angry when their customer has a home policy with a specified ring clearly insured for say $20,000 and the insurer says they will only pay $10000. How can this happen?
Simple, it goes back to the fact that the home insurance policy is not interpreted as an agreed value policy, unlike Q Report. Even specified jewellery on a home policy often uses terms like “you are insured up to $20,000” therefore the home insurer interprets this that as long as they can supply the customer with something similar “like for like” the replacement cost is irrelevant and if they can buy it from a preferred supplier for $10,000 than they just saved $10,000 off the bottom line.
This is blatantly unfair! How can that be if they have paid the premium on $20,000?
Unfortunately, these are large insurers who set their own rules, and every now and again someone challenges and inevitably wins. Having home insurance is important but Q Report was developed specifically for only one purpose: to insure customers jewellery, with the understanding of the importance for jewellers to hold on to their customers in the case of a claim. We don’t offer Jewellers Bloc for stores, we don’t do Home, Car, Life or any other insurance just personal jewellery and we do it very well. If our customer had a ring insured for $20,000 and they had a total loss, 20k is the min we would pay out, and possibly more.
What do you see as the difference Q Report is making to the industry?
Q Report introduced the idea that jewellery insurance should be a part of the service offering in every conversation. It’s about looking after their client and protecting their interests. Many have written about the “cost of acquisition,” that is, what it costs a retailer to get a new customer. Well, just think! You sold a beautiful engagement ring to this new customer, they had it stolen, and now what? You never see them again because you never brought up insurance in the conversation.
They didn’t specify it on a policy so they don’t have cover. They did all that but you will never see them again because the home policy sent them elsewhere, or worse gave them a cash check to go on holidays.
Q Report Jewellery Insurance is giving jewellers the best chance hold onto their customers, when it comes to insurance, and continues to inject millions of dollars a year in claims back into the jewellery industry.
Interview with Kim Ridley
National Sales Marketing Manager
Q Report Jewellery Insurance.
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