We have recently had an influx of new users register on Quotemonster and would like to take the time to re-introduce our Research and Rating Methodology.
We think that using real-world data to make our research value-based makes it a lot easier to see which features and benefits really count, and which are just bells and whistles.
Our Four-Factor Research includes:
- Definition – the quality of the policy wording
In our definition score, we are purely looking for differences between policy wordings but will use the same sub-items across products (e.g., Agreed value, Indemnity, Loss of Earnings). We start with a score of 100 and usually make deductions according to restrictions and limitations in cover. Our approach differs for “Exclusions” as these take away from the policy so you will see this as a negative total score. A variation of this approach is also used in our rating for “Offsets.
- Incidence – How likely the benefit is to be claimed
We collect data from re-insurers, statistics, underwriters, and medical experts to identify how likely each benefit will be claimed on.
- Amount – How much would be paid
Here we identify how much each insurer will pay. In trauma insurance, some companies pay the full benefit for an item, others only make a payment of 10% or 20% of the sum insured because the condition was not severe enough to warrant a full payment. Our score is varied according to how much would actually be paid. For some benefits, we create a claims scenario to determine the amount paid as it is not as clear-cut.
- Frequency – How often the benefit would be paid
Here we determine if a claim can be made more than once. A client can only claim on life insurance once, therefore the frequency will be 100% however this is less clear-cut for Medical which is where we create a claims scenario that will reflect multiple claims over a lifetime of the policy.
We then multiply the four factors to obtain the Insurance Quality Score that you will see on Quotemonster.
Definition x Incidence x Amount x Frequency = Insurance Quality Score
Also, we don't so this alone. We take advice - from a variety of expert sources below, and also from regularly engaging with advisers and insurers. In fact, we are running two consultations right now, and receiving input from reinsurance research to update our trauma claims incidence rates. We support an evidence-based approach to advice.
If you would like a one-page explanation of why methodology matters please email or call the team and we can send you the methodology info-graphic. If your team has new staff members (or any that would like a refresh), we can invite them to our regular Quotemonster and Advicemonster training sessions (attendees include Insurer Product Managers and various other Industry members). Please feel free to email through contact details of those who are interested in attending (firstname.lastname@example.org).