Bringing a new insurance program to market is an exciting time for the program’s agency and staff, as well as their carrier partner.
Policyholders will benefit from the financial strength and broad range of resources that a new carrier brings to the agency’s book of valued business. The potential exists to expand this book of business to new accounts, while also substantially improving loss ratios and, thereby, profitability.
“Workings” of the program
A program’s forms can include specific policy language to address unique exposures that are contemplated by that program. There are various insurance organizations (i.e.: ISO, AAIS, NCCI) that carriers may subscribe to for use of standardized coverage forms to address more common exposures. While these standard forms might not handle the unique risks of every program, they are a good foundation as a starting point, along with additional tailoring through the use of manuscript endorsements. Similarly, these organizations provide baseline pricing across states, with adjustments being made from there based on the individual carrier loss experience and expense structure.
Loss control and risk management
Along with underwriting guidelines, loss control and risk management activities go a long ways towards controlling a program’s claim experience and profitability. Working together, the agency and carrier will establish a loss control service plan appropriate to the class of insureds and its range of potential exposures. Furthermore, this is an area where the agency can make great use of the carrier’s in-house and field underwriting and loss prevention specialists.