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📋 '''Fact find''' is the structured process by which an [[Definition:Insurance broker | insurance broker]], [[Definition:Insurance agent | agent]], or adviser gathers detailed information about a prospective or existing client's circumstances, needs, risk exposures, and objectives before recommending or arranging [[Definition:Insurance policy | insurance coverage]]. In insurance, the fact find serves as the evidentiary foundation for the entire advisory and placement process — it ensures that the intermediary understands what the client actually needs, not merely what the client initially asks for, and it creates a documented record that demonstrates the suitability and appropriateness of the advice given. Regulatory regimes worldwide treat the fact find — whether called a "demands and needs" assessment, a "know your client" exercise, or a "needs analysis" — as a core obligation of [[Definition:Insurance distribution | insurance distribution]].

🔎 The scope and depth of a fact find depend on the type of insurance being arranged and the regulatory requirements of the relevant jurisdiction. For a [[Definition:Commercial insurance | commercial insurance]] client, the process may involve an extensive review of the business's operations, revenue streams, contractual obligations, existing coverages, claims history, risk management practices, and growth plans — often requiring multiple meetings, site visits, and engagement with the client's finance, legal, and operations teams. For [[Definition:Personal lines | personal lines]] products, the fact find may be shorter but still structured: capturing details about assets to be insured, household composition, existing policies, and any non-standard risk features. Under the EU's [[Definition:Insurance Distribution Directive (IDD) | Insurance Distribution Directive]], intermediaries must conduct a demands-and-needs assessment for every insurance sale, with additional suitability requirements when providing advice on [[Definition:Insurance-based investment product (IBIP) | insurance-based investment products]]. In the UK, the [[Definition:Financial Conduct Authority (FCA) | FCA]]'s conduct sourcebook similarly mandates that firms gather sufficient information to provide suitable advice. In the United States, the standard is shaped by state-level regulations and common law duties of care, with the depth of obligation varying depending on whether the intermediary holds itself out as a mere order-taker or a trusted adviser.

✅ A thorough fact find is the intermediary's most important risk management tool — both for the client and for itself. When a [[Definition:Claims | claim]] arises and the client alleges that coverage was inadequate, the documented fact find is the primary evidence that the broker asked the right questions, understood the client's exposures, and recommended appropriate products. Gaps in the fact-finding process are the single most common trigger for [[Definition:E&O insurance (professional indemnity insurance) | E&O claims]] against intermediaries. Beyond defensive value, a rigorous fact find drives better outcomes: it enables the broker to identify coverage gaps the client may not have recognized, tailor [[Definition:Policy wording | policy wordings]] to the client's specific risk profile, and negotiate more effectively with [[Definition:Underwriting | underwriters]] by presenting a complete and accurate picture of the risk. As digital distribution grows, [[Definition:Insurtech | insurtech]] firms are developing dynamic digital fact-find tools that guide customers through needs-assessment questionnaires, auto-populate data from external sources, and use algorithms to flag potential coverage gaps — translating a traditionally manual, paper-heavy process into a faster and more consistent digital workflow without sacrificing the regulatory rigor that underpins it.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Demands and needs assessment]]
* [[Definition:Know your client (KYC)]]
* [[Definition:Insurance Distribution Directive (IDD)]]
* [[Definition:E&O insurance (professional indemnity insurance)]]
* [[Definition:Suitability assessment]]
* [[Definition:Duty of care]]
{{Div col end}}

Definition:Fact find - Revision history

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