What essential information must be recorded in a suitability statement?

A suitability statement is a critical document in the insurance broking process that serves to define the appropriateness of the insurance products being offered to a client. It specifically captures the client's demands and needs, which is essential for ensuring that the products recommended align closely with what the client requires.

Recording the client's demands and needs is vital because it helps the broker understand the specific circumstances, preferences, and risk tolerances of the client. This understanding allows the broker to tailor recommendations that genuinely fit the client's unique situation, thus supporting a positive customer experience and promoting responsible insurance practices.

In this context, the other options, while important in their own right, do not directly relate to the primary purpose of the suitability statement. For instance, premium costs and terms are crucial for decision-making but do not reflect the client's needs and demands. Insurer's ratings and reviews contribute to evaluating the quality of providers but are not fundamental to the suitability assessment. Lastly, the broker's commission structure is more relevant to the broker's business model rather than the client's specific insurance needs. Therefore, while all these factors play a role in the overall insurance process, the core of the suitability statement focuses on the client's demands and needs.