Got a call this morning from the manager of a residential condo complex here in Maine.
Last year's premium was $12,000. Traveler's non-renewed the policy, as it is "coastal." The manager worked with the current agent; several board members tried to help by going to other agents. This left the insured with multiple agents all going to the same insurers, multiple quotes from multiple insurers, several from the same insurance company, but different premiums.
The current policy expires in eight days.
The manager is frustrated, confused, and looking at a higher premium (I won't tell you how high, as agents are still working on this and may read my blog). Big mess. Nobody is happy; not the manager, not the board, not the agents, not the underwriters.
I offered a solution that often works: go to a direct writer who has not been in the game yet.
I don't know if this will solve the problem. I sent them to an agent for Nationwide who has done good work for other clients.
Sometimes the solution to a problem is a very hard right.
It does not untangle the rat's nest. It throws it out. As I said, a hard right.
Now, to the preventative:
Renewals must be managed by the insurance buyer. Nobody looks after your business like you do. Take it on and hold your agent accountable. Set dates and expectations.
If you are going to get competitive bids, that process needs to be managed, too.
There can only be one captain of the boat. The condo above had too many people contacting agents with no coordination.
You must assign insurers to agents. Find out which insurer each participating agent wants to use. Assign insurers to the agents based on the requests of the agents. Someday I hope that insurers will provide quotes to multiple agents. Until then, we must assign insurers.
If I hear how this works out, I'll let you know.
Last year's premium was $12,000. Traveler's non-renewed the policy, as it is "coastal." The manager worked with the current agent; several board members tried to help by going to other agents. This left the insured with multiple agents all going to the same insurers, multiple quotes from multiple insurers, several from the same insurance company, but different premiums.
The current policy expires in eight days.
The manager is frustrated, confused, and looking at a higher premium (I won't tell you how high, as agents are still working on this and may read my blog). Big mess. Nobody is happy; not the manager, not the board, not the agents, not the underwriters.
I offered a solution that often works: go to a direct writer who has not been in the game yet.
I don't know if this will solve the problem. I sent them to an agent for Nationwide who has done good work for other clients.
Sometimes the solution to a problem is a very hard right.
It does not untangle the rat's nest. It throws it out. As I said, a hard right.
Now, to the preventative:
Renewals must be managed by the insurance buyer. Nobody looks after your business like you do. Take it on and hold your agent accountable. Set dates and expectations.
If you are going to get competitive bids, that process needs to be managed, too.
There can only be one captain of the boat. The condo above had too many people contacting agents with no coordination.
You must assign insurers to agents. Find out which insurer each participating agent wants to use. Assign insurers to the agents based on the requests of the agents. Someday I hope that insurers will provide quotes to multiple agents. Until then, we must assign insurers.
If I hear how this works out, I'll let you know.
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