Has your insurance agent or broker ever sat down with you and asked you what the company goals are for the next three years? Has your agent or broker ever asked you what your single biggest challenge is in the next 12-18 months? What does your agent or broker really know about your company? An even better question is: What do they present to the insurance company underwriter when they market your renewal?
You may be thinking “What difference would it make? Isn’t the insurance all about the numbers and premiums?” My answer to you would be: “Absolutely not!” Underwriters price for what they know and what they don’t know about your account. What they know and what they don’t know drive the amount of premium that you have to pay.
So, if you go to market your renewal, and you are dealing with two or three brokers, what’s their story? Who is presenting you the best to the marketplace? Has any broker ever shown you the information they send to the underwriter? An agent’s goal should be to lower your Total Cost of Risk, thereby making you more attractive to the insurance marketplace and increasing your profits.
Even though the direct premiums are the smallest part of Total Cost of Risk, it is a very important part of the risk management process. Ask your agent what they’re presenting to the underwriters. Ask your agent if what you’re doing, as it relates to risk management, and what they're presenting, is getting you to your lowest band of pricing.