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SELLING RISKS TO UNDERWRITERS
The 365 Day Renewal Process
Brian SchofieldManaging Director
Willis
Rose KevilleDirector
Bureau of Risk and Insurance ManagementState of New York
September 17, 2002
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Know Your Risk
Become totally knowledgeable about your risks.
Become knowledgeable about other public entity risks and your relationship to the overall public entity sector.
Be seen as a “Driver”. Be comfortable about what you don’t know. Benchmark your exposures and loss
experience against industry standards. Back yourself up with statistical evidence.
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Find Good Partners in Your Broker and Insurer
Look for the same qualities in them that they look for in you. Commitment Knowledge of the risk Mitigation of loss/prevention of loss Claims Longevity Additional services unique to your entity
and that enhance your job performance
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Think LONG TERM
Should you change brokers and/or carriers for 10 – 20%?
Try to lock in a multi-year broker service contract.
Discuss multi year deals with your carriers.
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The Renewal Process
Pick One broker – It is difficult to “partner” with 3 different brokers.
Pick your broker at least 180 days prior to renewal.
Constantly update your exposures. Do not “shotgun” the market – create a
short list that you and your broker will personally visit.
Spend as much time as possible answering all of your underwriters questions.
Never be afraid to say “I don’t know, but I’ll find out”.
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The Renewal Process (Continued)
Ask about LTA (Long Term Agreements) – Get the OK from your senior management to lock one in if it makes sense.
Focus on terms, conditions and limits even more than premium dollars especially if you have a big loss. It may be worth the extra 10% to get broader coverage.
Explore options to risk share with your insurers (if you have been guaranteed cost or have a very low deductible).
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The Renewal Process (Continued)
If you have loss runs, do a triangulation and loss pick as part of the submission –your broker can help you.
Personally conduct tours of of any buildings or facilities the underwriters want to visit.
Invite them to meet with your facilities and safety people.
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Create A Winning Partnership
Although cost is important, it is more important to have the proper coverage in place when you need it.
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Know Your Losses
Understand how losses affect your program.
Read your loss runs before sending them on to your carriers.
Dispute claims that should be taken down.
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Benchmark Your Risk
Show the underwriters how you manage your risk better than other public entities.
Address claims frequency and/or severity.
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Test Your Partners
When choosing a broker or carrier, see how committed to the partnership they are… Employee Training Additional Staffing Perimeter Security Survey Property Preservation Program
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Know Your Brokers and Underwriters
Know your team. Identify an account manager -
the most crucial member of your “team”.
Know the Marketplace. Meet the “specialists”. Meet the claims people before
you have claims.
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Prepare Your Broker for What you Expect of Them
Let them know that proposals should be concise and without boiler plate.
Communication is key to a successful partnership (timeliness and a sense of urgency are imperative).
Negotiations should also be done as a partnership. Let them know that you will be an integral part of the renewal negotiations.
Make sure they keep you appraised of all claims.
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Nourish Your Partnership
Arrange regular scheduled meetings with your brokers and carriers – at least quarterly.
Communicate additional exposures throughout the year.
The ideal interaction between you as risk managers and your brokers and underwriters should produce a product which is better than that which any of you would have produced alone.
