You Have One Opportunity to Make a Strong First Impression
Try walking into a room naked and then re-entering the same room fully clothed and see how many people forget what you looked like the first time you entered the room. Sending a substandard risk submission to an underwriter and then trying to unravel that profile with additional key information is no different. Underwriters are human, after all.
It is understood that most insurance brokers have limited time availability; with over 30 years of experience, we know about the time conflicts. Brokers balance high volumes of policy administrative work while trying to make time for risk submissions, renewal reports, winning new business, and even leading teams of Brokers within their division.
Time management is another topic altogether, but one thing is for certain: Brokers cannot compromise on risk submission quality and blame lack of time for the reason for submitting a poor-quality submission.
Creating a quality risk submission is more than a mere administrative task—it’s a strategic move that can significantly influence clients’ outcomes. Doing so helps secure the best terms and coverage for your clients, enhances your professional credibility, and fosters strong relationships with underwriters.
Duty of Care
As brokers, you have a duty of care to your clients to present their risk profiles in the best possible light. This means advocating for their interests, ensuring that all relevant information is included, and working diligently to secure the best possible terms. Upholding this duty of care not only serves your clients but also strengthens your reputation and trustworthiness in the market.
Understand the Client’s Needs and Risks
A comprehensive understanding of your client’s business, operations, and potential risks is the foundation of a quality risk submission. Take the time to conduct thorough risk assessments and identify all potential exposures. This ensures that the information provided to underwriters is accurate and reflective of the true risk profile.
Visual Suggestion: Include digital photos and drone footage (if possible and relevant) of the client’s business operations and key risk areas to represent their environment clearly.
Resources Tip: LMI Risk Coach or AM Best Underwriting Reports are great resources for the key risk checklists that can form an integral part of your risk submission to Insurers.
Gather and Organise Detailed Information
Accuracy and detail are crucial. Gather all necessary documentation, including financial statements, loss histories, and other relevant data. Make sure the information is up-to-date, clearly presented, and organised logically. This will make the underwriter’s job easier and demonstrate your professionalism and attention to detail.
Visual Suggestion: Use charts and graphs to represent financial data and loss histories visually.
Highlight Key Risk Mitigation Measures
Underwriters need to know what measures your client has in place to manage and mitigate risks. Clearly outline any safety protocols, risk management programs, quality assurance accreditations or other initiatives that reduce the likelihood or impact of potential losses. This can significantly improve the perceived risk profile and lead to more favourable terms.
Visual Suggestion: Include photo or video footage showing safety measures and risk management programs in action. This can provide a dynamic and comprehensive view of the client’s efforts to mitigate risks.
Craft a Clear and Compelling Narrative
Your submission should tell a compelling story about your client and their business. Beyond just presenting facts and figures, provide context that helps the underwriter understand the unique aspects of your client’s situation. A well-crafted narrative can make your submission stand out and resonate more effectively with underwriters.
Collaborate and Communicate Effectively
Maintaining open communication lines with your client and the underwriter is essential. Ensure that you fully understand the underwriter’s requirements and preferences and be prepared to answer any questions they may have. Regular communication with your client throughout the process also helps ensure that all information remains accurate and current.
Communication Suggestion: Be transparent with your client regarding market feedback and ask them to help you prepare any additional information/responses to queries raised by Underwriters. Consider engaging your client and the Underwriter on a VC to discuss their business and the risk profile. This can be a very beneficial process for all parties.
Review and Revise Thoroughly
Before submitting, take the time to review and revise the risk submission thoroughly. Look for any inconsistencies, errors, or omissions that could undermine its quality. A polished, error-free document reflects well on both you and your client and can contribute to a smoother underwriting process. Ask your client to review the document and ask them for any additional risk profile highlights that are not included.
Visual Suggestion: Use a checklist graphic to highlight the key points to review before submission.
Conclusion
A quality risk submission is the linchpin of successful insurance placements. By taking the time to thoroughly understand your client’s risks, gathering detailed information, highlighting risk mitigation measures, and crafting a compelling narrative, you can significantly enhance the chances of securing the best possible outcomes for your clients. Remember, as brokers, your duty of care is paramount—ensuring that you always strive to represent your clients’ interests with integrity and professionalism.
