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Financial Advisor » Job Drive SA
Understanding financial adviser binder agreements
Abinder agreement is an agreement between an accredited short-term financial adviser and Discover,
insure, whereby the financial adviser has the ability to administer their book of clients.
Dedicated service offering
Discovery Insure binder holders are offered a dedicated servicing channel in the form of the Binder
Support Team.
Included in this dedicated offering are:
Dedicated Key Account and Relationship Managers
Reduced service level agreements (SLAs) with initial response times of maximum four business
hours
Internal escalation channels to accelerate escalations received from the binder holders
Discretionary (additional) discounts where the business case requires and justifies discounting
beyond the allocated binder discounting mandate
A hold cover facility
VIP Claims
Binder portfolio performance management
Training.
Binder holder maintenance and monitoring
The Binder Support Team must perform the below monitoring activities:
© Binder holder audits, especially where cover is held, and retention actions:
A formal template to be completed detailing:
Audit date
Plan number
Binder actions reviewed
FAZ use (must be above 80%)
Indication of correct or incorrect process followed
Communication back to binder holder giving summary of audit findings
Action points (where relevant) with applicable timeline.
Must record monthly meetings or onsite visits, with specific details relating to:
Latest audit
New business trends
Lapse trends
Loss ratio
FAZ use (must be above 80%)
Training need identification
Areas where binder holder feels support is lacking
Action points and applicable timeline.
Financial advisers who currently have a Discovery Insure Personalised Sales (DIPS) contract cannot
enter into a binder agreement. Financial advisers who enter into a binder agreement will need to
assume administration for all their existing Discovery Insure clients on the Financial Adviser Zone
(FAZ). Discovery Insure will audit financial advisers on a regular basis to ensure that the above
requirements are met.
How you can benefit from a binder agreement
Financial advisers who enter into a binder agreement with Discovery Insure will have the ability to:
Hold cover for up to 96 hours for clients, for example in the event that there is insufficient ti
to do the necessary paperwork before the client takes ownership of an asset
Provide discounts on Discovery Insure Plan premiums to clients who they believe have a
favourable risk profile. (The maximum permissible discount available will be at the discretio
Discovery Insure.)
Financial advisers will be paid an additional fee for undertaking this administration
Earn an additional 3% premium income on their Insure book of business
Effect all servicing changes through the Discovery Financial Advisor Zone (FAZ)
Give up to 10% discount on favourable clients
Log claims through FAZ
Who to contact
Binder Support Team:
The Binder Support Team can be contacted through direct action or by routing the request to the mr
appropriate person or department) the team is able to assist with the following:
All forms of query escalations, including claims
Product knowledge
Systems support
Commissions and binder fees
Reporting
The Binder Support Team cannot assist with the following:
Creating new business quotes
Servicing existing clients’ Plans
Contacting clients