Why Do Insurance Carriers Request So Much Information?
That’s a good question. Better yet, what return do you receive for the investment in your time? Both may be questions you’ve asked if you’ve decided to market your insurance. The best answer is this…the deepest understanding of your needs equals the best results. I could end this blog with that simple answer…but, it’s just that…“simple.” There really are a number of reasons so much information is required.
Insurance carriers have access to advanced analytics that aid underwriters in pricing insurance policies. This is responsible for roughly 70 percent of the pricing decisions…leaving the remaining 30 percent to underwriter discretion in most cases. That can be scary, especially if they don’t have the information they need.
Underwriters base their decisions on prior loss experience and exposures. That’s where a broker, like Holmes Murphy, steps in and helps. Our job is to help underwriters see the future and how your company’s risk profile is improving. What it boils down to and sets apart an excellent broker is this: communication — helping clients understand what to expect from the market process and preparing them to achieve the best results possible.
The more (and better) underwriters understand your business, the more flexibility they have in this 30 percent. This means it’s critical to facilitate successful risk control visits and help them see the investments made in risk management.
At Holmes Murphy, we use our trademarked Understanding ART approach to help gain the deepest understanding of our clients’ and prospects’ businesses, as well as their risk management goals. We’re able to take what we learn from this process to help achieve great results. We do this by assigning a team of risk professionals who take the time to fully understand our clients’ and prospects’ claims, risk control, and service goals. This information is used to feed an insurance narrative the carriers review — allowing us (the broker) to control the information flow and how it’s received…resulting in the very best option available for our customers.
So, if you’re looking to market your insurance, be prepared for a lot of questions. We’d be happy to help guide you and get the most cost-effective and efficient insurance policy possible for your business.
Published on: 04.09.18