Energy On The Offensive™ #010 - How Is Your Story Being Told To Underwriters?

Insurance brokers are lazy.

Insurance underwriters report that they receive the necessary information with a story told about a company from brokers only 5-10% of the time. See below.

This is sad considering we brokers receive 10-15% of the premium in commission. For what we are paid, the least we could do is provide the insurance companies with the necessary information…

How does this affect the rates you pay?

At renewal when rates go up and “no one else was competitive”, the problem is typically not your business but a lack of effort on the broker’s side.

Common Problems:

• Applications are incomplete or have outdated information about your business.

• Additional information or questions underwriters asked went unanswered.

• Brokers do not understand the nuances of your business and this gives underwriters uncertainty.

• Investments in safety go uncommunicated to underwriters.

What can you do about it?

When selecting a broker to represent your business you should ask them how they communicate the details of your business to underwriters. The response you are looking for is a document in which they provide pictures and detailed descriptions of your operations, information on prior claims, and how your company approaches safety to reduce claims. You should receive a copy of it to review.