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Why Does Every Demands and Needs Statement in Our Office Look Different?

Insurance brokers write demands and needs statements by hand and file reviews find gaps. We build them from the fact find so each file is consistent.

Updated 3 min readBy SpiderHunts Technologies

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Quick answer — TL;DR

Demands and needs statements vary because each handler writes them from memory at the end of the sale, often after the policy is on cover. We build them from the structured fact find and the quotes considered, so the statement reflects what the client said, which options were looked at and why, and the handler edits and approves it before it goes out.

A document written at the end, from memory

The policy is placed. The client is happy. The handler now has to produce the demands and needs statement and, for advised business, the suitability reasoning. They open the template, delete last client's name, and write a few lines about what the client wanted. Some handlers write a paragraph. Some write a page. Some copy the previous client's wording and adjust it.

Then the file review comes round, whether internal or from your network or compliance consultant, and it finds the same things: statements that do not mention the cover the client specifically asked about, reasons that are generic, and no record of why the second insurer was not chosen.

The gap between the conversation and the file

The information needed for the statement was gathered earlier, in the fact find, the phone call and the quote comparison. But it was gathered in notes, emails and memory, not in a structure the statement can be built from. So the statement becomes a separate writing task at the end of the process, when the handler has already moved on to the next case.

What your firm's rules require in the statement is for your compliance function to decide. The operational problem is simply that the information exists and is not reaching the document.

Why it matters beyond the file review

  • Inconsistent records make it harder to show that each client's cover was considered properly.
  • Handlers spend time writing prose at the end of each sale.
  • Remedial work after a file review takes experienced people away from clients.
  • If a claim is declined on a gap in cover, the file is the first thing anyone looks at.
  • New handlers learn the job from whatever the last file looked like.

Building the statement from the fact find

  1. We turn your fact find into a structured form for each class, capturing the client's stated needs, the cover they asked about, what they declined and why.
  2. The form is used during the call or meeting, or sent to the client to complete, so the answers are captured at the time rather than recalled later.
  3. The quotes considered and the reason each was or was not chosen are captured from the comparison stage.
  4. A draft demands and needs statement is assembled from those facts using your approved template and wording blocks.
  5. Where a client declined a cover, such as business interruption or legal expenses, the statement records it in the wording your compliance team approved.
  6. The handler reviews and edits the draft, and approval is logged with their name and the date.
  7. The final statement goes to the client and is filed in your broking system against the policy.

Wording blocks are written and signed off by your compliance people, not by us. We make sure the right block appears when the facts call for it.

What a file looks like afterwards

File elementHandwritten todayBuilt from the fact find
Client's stated needsSummarised from memoryTaken from answers given at the time
Covers declinedSometimes mentionedRecorded whenever declined in the fact find
Options consideredRarely listedPulled from the quote comparison
Consistency across handlersVaries by personSame structure, handler's own commentary
ApprovalImpliedNamed and dated

Handlers still write the parts that need thought, such as why a particular recommendation fits the client. They stop writing the parts that simply restate facts already captured.

Is this your situation?

  • File reviews keep finding thin or generic demands and needs statements.
  • Statements are written after the policy is placed.
  • Declined covers are not consistently recorded.
  • Each handler has their own version of the template.
  • You could not quickly pull every statement where a client declined a particular cover.

FAQ

Frequently asked questions

The questions readers ask us after this guide.

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Do you write our compliance wording?

No. Your compliance function or adviser approves the wording blocks. We build the system that assembles them from the facts captured.

Will this satisfy a file review?

We cannot promise any review outcome. What we build makes the record consistent and complete as your own rules define it, which is what file reviews look at.

Does it work for both advised and non-advised sales?

Yes. The templates and questions differ by sale type and class, and the draft follows whichever applies.

Do handlers have to change how they talk to clients?

The fact find becomes a structured form, which most handlers find easier than free notes. The conversation itself stays theirs.

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