The market conditions of the past few years have been chaotic with rate increases, guideline changes, and restrictions on appetite. Underwriters are now scrutinizing new business submissions with an extensive list of questions and utilizing an increasing list of digital tools to thoroughly examine all critical aspects of your account (i.e., Betterview, CrimeGrade).
Below is a list of suggestions to improve the quality of your commercial lines submissions and perhaps shorten the trend of increasing response time with your underwriters.
Create a Narrative – A good narrative includes: (1) background of the insured’s business and its operations, (2) description of products and services, (3) management and/or ownership experience, (4) your relationship with the decision maker and why they are looking to switch insurance providers, and (5) unusual risk factors and why the account is a good fit. Also, include with your Narrative the insured’s Website, social media accounts, and pertinent marketing materials.
Prior Carrier Information – It is important that you communicate prior carrier information, including expiring premium and relevant coverages and limits. You should also always communicate a target premium and any additional terms you need to add as a part of your proposal.
Copy of Expiring Policy – Obtaining a copy of the existing or expiring policy has multiple benefits: (1) it shows the prospect is serious about wanting to switch their insurance to a new provider and (2) it allows a complete review of the current coverages, and policy forms.
Loss History – Starting with a minimum of 3 years (preferably 5 years) of currently valued loss runs is essential. If there have been losses, a detailed description of the claim and mitigating efforts will be expected by most underwriters. If a claim is still open, many underwriters will elect to not provide a proposal. But, a detailed explanation of the status of the claim and timing for resolution, can give an underwriter a basis upon which to evaluate an open claim.
Note on New Purchases: Underwriters have begun asking for the Loss History of the prior owner. This is actually a legitimate request and should be a part of the buyer’s due diligence for the purchase.
Pictures – It may be “old school,” but pictures taken by an agent show there was an effort to complete front line underwriting of the account and will convince an underwriter to take your submission seriously.
Do Your Homework on the Internet – Before you finalize any submission, (1) verify the entity’s name with the Secretary of State’s Website, (2) verify the owner of the property via the Auditor’s Website, (3) thoroughly review the prospect’s Website and social media accounts to verify goods and services provided and uncover other activities not discussed as a part of your diagnostic interview, and (4) conduct other general Google searches to identify information not disclosed or uncovered in your conversations with the prospect.
Other Relevant Submission Items
- Updated Gross Receipts, Payroll and Number of Employees.
- Replacement Cost Estimations for all Buildings and Structures.
- Building Updates (Roof, HVAC, Plumbing, Electrical).
- Provide a Statement of Values if multiple locations are involved.
- Equipment lists should include year, make, model, serial number and value.
- Commercial Vehicles need to have GVW, radius and value.
Final Notes
- Always type your applications; Avoid handwritten submissions.
- Provide a Need By Date that is reasonable; ASAP is not a valid date.
- Avoid mid-term quoting, unless there are explainable and extenuating. Circumstances.
- Start as early as possible on your submission and expect the whole process to take a minimum of two-three weeks to complete