2. Speed and Flexibility
Speedy and accurate claims handling, flexible underwriting decisions and reliable communications should be a given when working with carriers or MGUs. Unfortunately, there are no guarantees and it is necessary to conduct due diligence when establishing a relationship. A carrier’s mammoth size, for instance, may result in potentially slow claims processing. And while MGUs are smaller and should be more nimble, that isn’t always the case. Choose your MGU wisely by asking for referrals that demonstrate the skills, expertise and responsiveness you want in your relationships.
Competition has commoditized most insurance products, making price a non-issue within many lines. All risks, however, are not the same. Perhaps you have a client with claims experience that is shorter than desirable. Or you have a client with recent poor experience, but no prior history of higher-than-average claims. In these instances, you face the possibility with many major carriers, which operate within strict guidelines, that the insurance your client needs is unaffordable or even unavailable. MGUs are more likely to look outside the box when structuring programs – and in some cases, may be able to customize a program to meet a client’s unusual circumstance. A good MGU will maintain flexibility and look for ways to do business (not ways to avoid business) that work for everyone.
How often have you tried to talk with a decision-maker at a carrier to speed along some business, only to be rebuffed? MGUs focus on personalization, and offer brokers a smaller company vibe with more ownership and accountability. With an MGU, you are more likely to have direct access to underwriting and claims managers without the red tape you might have to maneuver around at a carrier. The right MGU offers a level of transparency and responsiveness your clients deserve.
Because MGUs typically operate with an entrepreneurial spirit, they enjoy working with brokers to understand a client’s entire risk portfolio. Good MGUs will ask lots of questions while looking for real opportunities; they will roll up their sleeves and dig in to truly understand a client’s needs. This holistic approach can open doors to new business – if not with this MGU, then with another MGU or direct through a carrier.
6. Financial Strength
An MGU’s financial strength must play a role in any decision you make, so make sure the MGU you select has a profitable track record. Equally as important are an MGU’s carrier relationships and their insurers’ ratings. While many lines of business may be commoditized, a slightly lower price is worth little if a carrier struggles to maintain decent financial ratings or if loss ratios regularly exceed industry norms.
Add it all up and the right Managing General Underwriter can give you and your clients a level of service that you might not expect from a carrier. In fact, many MGU managers gained their experience working for carriers, but have moved on as they prefer the autonomy and authority MGUs grant them. Taking time to select the right MGU will lead you to a long-term partnership that can benefit both you and your clients. Because good service trumps everything else, the right MGU will understand that relationships matter and are key to keeping clients happy.
To learn more about how AmWINS can help you place coverage for your clients, reach out to your local AmWINS broker or firstname.lastname@example.org
Legal Disclaimer. Views expressed here do not constitute legal advice. The information contained herein is for general guidance of matter only and not for the purpose of providing legal advice. Discussion of insurance policy language is descriptive only. Every policy has different policy language. Coverage afforded under any insurance policy issued is subject to individual policy terms and conditions. Please refer to your policy for the actual language.
(c) 2017 AmWINS Group, Inc.
The Federal Motor Carrier Safety Administration mandate which requires nearly all U.S. truck operators to use electronic logging devices (ELDs) to track duty status has been upheld in court and will take effect December 16, 2017. The mandate will impact not just the trucking industry, but the trucking insurance sector as well.
For the insurance industry, a major hurricane making landfall means an enormous number of claims, often resulting in rate increases for insureds and changes to catastrophe models. Check out this infographic which highlights the 10 most costly hurricanes in U.S. history, ranked by estimated insured loss.
Liquor liability is a complex coverage that is becoming increasingly difficult to procure, but with a proper understanding of the type of risk, venue and location, you can more effectively position your clients for success with underwriters.
The resurging construction industry means that builder's risk submission activity is on the rise. As such, it's important to understand this line of business. Here's an overview of some things to consider on a builder's risk policy.
Property damage doesn't always mean there was an alteration to structure or contents. In this article, we review a court case in which harmful air quality was ruled as causing “direct physical loss of or damage to” the company’s property.