How Retail Agents Can Develop/Improve Relationships with Wholesalers

The answer is yes.

And now for the question. Did you know that if your application is received by a broker/underwriter, and it is not complete, it goes to the bottom of his/her stack of new
business?

This is no way for us to establish good working relationships with our agents, or them with us. First impressions do still matter in both directions; and it is important to build good working relationships with our agents and our agents with their MGA/Broker/Underwriter.

When new business is received in the office, the first thing a broker does is thumb through
the application to make sure all the information for underwriting is in place. If it is incomplete, this means a phone call or e-mail is required to secure the necessary information, which slows down the underwriting process. Brokers look at a few key areas to make a brief determination as to which company might be best suited for that account.

The first is years in business. That may seem like small thing but many companies will not write an account that is a new business. If the applicant is a new venture and you put “0” years in business, it is best to explain so the broker/underwriter’s first thoughts are not that the account must be declined. For example, even though it’s a new venture, the insured may have 20 years’ experience in that line of business. That could make a difference as to whether the company will entertain the account. Provide as much information as possible to allow us to do our job in getting you a quote. Remember, our job is to make you look good, so give us the tools to get this done.

Prior carrier information is also important, as well as the premium charged for prior years. The broker wants to know where the account has been so they don’t go to the incumbent company to get a quote, but may if it’s been a year or two since this company has been on the account. As respects pricing, even though we are in a soft market, it’s still important to know what the prior year’s premiums were. If the broker knows what the insured has been paying for coverage, it makes the journey backwards a lot easier.

As for items such as class codes, construction and occupancy, if those areas are filled in, it certainly takes the guesswork out for the underwritier. I was an underwriter once and it never ceased to amaze me the number of applications submitted without a description of operations. If the insured’s name happened to be “The Southwell Companies,” there was no way I could guess what these people were doing. That alone made it very hard to begin the underwriting process.

I know this application stuff seems to be old hat. Who would send an application to a company that wasn’t complete? Well, that’s the reason I bring the subject up yet again. It happens everyday in the broker’s world. Wonderful people that we are, we make calls and send e-mails trying to secure the information needed to make a sound underwriting judgment. That doesn’t speak for the fact that by the time we get back to that incomplete application, it’s the day after a quote is needed and the agent is upset because we didn’t get a quote much quicker. Hence, complete applications rise to the top of the new business stack.

Equally important from the broker’s standpoint, is that the agent not send the same account to every company/MGA in their office. This is where the relationship really comes into play. With the number of companies/MGAs in an agent’s office, it is very difficult to get a handle on what any specific one is looking to write on that day-it changes frequently. Standard markets are a little easier, but with surplus lines it is more difficult to know what each company wants.

That’s where the phone comes into play. The quickest way to get an answer is to pick up the phone. That’s also the best way to start building that long-term relationship. No matter how easy it is to send an e-mail or fax, this is still a people business and I can’t imagine that changing any time soon. If you have to leave a message, be sure to leave a topic, account name or reason for your call. That way the broker can be ready for your conversation when they call you back.

Soft market or hard market a good relationship with your broker/underwriter is of the utmost importance and will enhance your ability to be successful.

Toni Campbell (campbell@gorisc.com) is the
marketing manager for RISC in Dallas. RISC pro

vides surplus lines brokerage and MGA facilities
throughout the United States. She has been in the

insurance industry for over 30 years serving with
standard companies, surplus lines/MGAs and agencies.

In 2000, Campbell served as president of the

Federation of Insurance Women of Texas.

Topics Agencies Underwriting Insurance Wholesale Market