Issue link: http://palletcentral.uberflip.com/i/1266845
34 PalletCentral • May-June 2020 palletcentral.com nderwriters want to know the are writing accounts that revent oss first and on ook to insurance or osses that cannot e revented. hat is dierent toda is the thoroughness o the underwriters' scrutin o our usiness. Since risk and insurance is not your specialty, this is challenging to discern. To perform well, a broker needs to be properly trained in insurance and risk management; committed to his/her line of work and to solving client needs; and have a team behind them (that works collaboratively) for support. They need to advocate on your behalf in the marketplace and not simply accept underwriter recommendations, especially premium increases. Remember, since they make more money as your insurance premiums go up, good brokers never want to give their clients the impression they're not working on your behalf. Ultimately, this is about protecting the company that you have worked hard to build. You need to have the best people working for your organization. If you believe they are not up to the challenge, follow your instincts and consider moving your account. Here are some characteristics of good brokers. n xerience They have learned the profession over a length of time (especially as an underwriter) and often have risk/insurance designations attesting to their commitment. Prior experience outside the insurance industry is helpful only if they commit to learn the industry in other ways, such as taking outside courses at their own time or learning the risk/ insurance business while not being client facing. Passing a state broker exam is not sufficient. For example, if your broker works in a sales capacity only (this happens frequently) insurance industry experience is especially important. Otherwise you're working with just a good talker. You should also determine the experience of each person who will be working on your account. n uestions Since insurance has unique and many complex- ities, it is important your broker has an inherent curiosity about their work and not be a know it all. For example, a question will come up and they may respond, "Let me check how other policies I write handle this issue and get back to you." Good brokers ask a lot of relevant questions specifically about your business, and will research ways to best support you. This gives confidence that they care about your organization. n oow u Whenever risk and insurance matters are discussed, invariably there will be a to-do list maintained – this is a broker's job. Good brokers keep notes on items that need follow up or on meeting agreements and follow up in writing following your meeting. n eerras Good brokers regularly secure larger name clients. What does your broker's direct client list look like (note: not accounts handled by his/her local, regional, or national office or company)? Ask for the list including names and telephone numbers and call them. Find out what a broker does well and what they need to improve upon. Maybe you know an account on the list which you know to be diligent and very demanding of their service providers. If so, this is a good indicator. 3 Consider a Competitive Bidding between Two Brokers When your broker shops the market for a proposal from other insurers, you will get a competitive proposal. However, it will not be a market (price and coverage) proposal since your broker always wins your account. To get a market proposal, you need to have two brokers compete for your account. You will need to allocate insurance companies by line of insurance. In this case, only one broker will write your account and be compensated. Conducting a competitive bidding is a service that is best performed by someone with deep expertise in insurance, for example, a licensed insurance advisor. The reasons are many, including that it is difficult to perform an analysis of the proposals if the only benchmark is price. Insurer offerings including coverage forms and rating bases vary significantly. These insurance best practices set your company up for success at the onset of a policy. And, they will alleviate the stress if you must declare a loss. Bob Allaire, Allaire Risk LLC, brings over 30 years of risk management and property/ liability insurance experience including 20 years with one of the country's largest independent risk management advisory firms. Bob holds the CPCU and ARM designations. He may be reached at 781-686-1605 and bob@allairerisk.com.