Jeweller - May 2022

OPINION
Soapbox
Strengthen customer relations by
lending a helping hand with coverage
Everyone wants to be protected in the event of a sudden disaster. LACHLAN RENSHAW
says retailers have an important part to play in helping customers pursue quality insurance.
What processes do you have in postsales
customer care for your client?
Most jewellers place jewellery insurance
in the ‘too hard basket’ and leave their
customers to fend for themselves.
Many customers protect their jewellery
through home and contents insurance
and assume that they are protected in the
event of a claim.
Unfortunately, this often leads to underinsurance
– which is when the item
insured on your insurance policy —
that is, the amount listed as the maximum
you will be paid if you make a claim —
isn't enough to cover the full cost of
replacing the stolen or lost jewellery.
The problem is exacerbated when people
travel or take a holiday because they do
not consider their policy conditions.
For example, a recent report by Allianz
Australia stated that more than 68 per
cent of Australians do not have insurance
for the valuables they take with them
on holiday.
Considering the number of people who
travel overseas on their honeymoon,
this is a considerable risk that they
unknowingly expose themselves to.
A recent case between a consumer and
an insurer best illustrates the problem.
A home and contents policyholder, who
had specified to the insurer the jewellery
items that she wanted covered before
purchasing the policy, lost a dispute over
sentimental jewellery pieces that went
missing during a hotel stay.
The home and contents insurance
provider denied her claim on the grounds
that she had not taken out the optional
extra cover for ‘portable valuables’,
which would apply for loss away from
the insured address.
So, how protected are most customers
who seek to insure their jewellery through
home and contents? The short answer is
not very well protected at all.
In the recent Australian Financial
Complaints Authority (AFCA) ruling
for this case, it was said, “She had the
opportunity to check and ask the insurer
about any concerns before the loss
occurred, but she did not do so”.
The ruling went on to say, “The full terms
and conditions are set out in the policy
documents which were provided at the
time (and again at renewal)”.
In another AFCA case in October 2020,
a homeowner who lost her engagement
ring after it fell through her deck was
awarded $50,000 for the jewellery in
a claim dispute hearing. A prominent
home and contents insurance provider
in Australia declined the claim to the
policyholder, saying the policy specifically
excluded cover for valuable contents that
are in the open air at the site.
“As the engagement ring was not lost
or damaged inside the home, but rather
lost while on the exterior deck that is
in the open air at the site, coverage is
not available in this circumstance,” the
insurer said.
However, in good news for the
policyholder, the AFCA determined that
the ring was covered.
The question jewellers need to ask
themselves is, by allowing customers
to fend for themselves to insure their
jewellery, are they providing exceptional
post-sales customer service? Particularly
when they have the knowledge and
experience to assist them in making an
informed choice?
So, how
protected are
most customers
who seek to
insure their
jewellery
through home
and contents?
The short
answer is
not very well
protected at all.
Post-sale customer service
Considering the ever-increasing
operational expenses for jewellers, it’s
no secret that ‘customer acquisition
costs’ are also rising. How much does
it cost you to advertise and promote
your business in order to gain a new
customer?
This includes advertising spend,
production costs, inventory upkeep,
salaries, commissions, technical costs,
overheads, creative costs, and many
others.
For this reason it’s in the best interest
of jewellers to educate and inform their
customers about adequate insurance
cover for their jewellery.
For most people the ideal insurance
offers worldwide cover, guarantees the
customer can return to the jeweller of
their choice and with no cash settlements
on the policy, just to name a few.
You don’t have to offer advice. Your valued
and loyal customers will appreciate the
fact that you are pointing out things that
they may not have considered.
It can be doubly appreciated when it
involves heirloom jewellery and other
items that hold great sentimental value.
There are a number of industry-specific
insurers that specialise in jewellery and
you can compare what they offer as a way
to investigate which might be best suited
to your clientele.
Name: Lachlan Renshaw
Business: Centrestone Jewellery
Insurance
Position: Director
Location: Sydney, NSW
Years in the industry: 8
54 | May 2022