Survey: Commercial Carriers Provide Poor Service

According to Allianz, poor service has caused 90 percent of property insurance brokers to recommend that a client switch carriers, while 46 percent of property insurance buyers have switched carriers due to poor service levels. Even
more alarming, 72 percent of brokers noted this poor service had a
"somewhat or very significant" financial impact on their business.

The company said its survey began prior to the RIMS' 2004 Annual Conference and Exhibition and will continue through today. It is being conducted as
part of a company-wide initiative at Allianz Global Risks US to lead the
industry in acknowledging, addressing and solving a problem that brokers
and buyers have come to believe is unsolvable, the carrier said.

Allianz said it found that the industry wants more communication and relevant knowledge.

The company said through questions in its survey about how well potential property carriers keep buyers and brokers informed during the review process, it became clear there was need for
improvement.

Brokers and buyers are deeply frustrated with a carrier's tendency to make them linger in the underwriting process without indicating whether or not the carrier is interested in the buyer's
insurance program, Allianz said.

According to the insurer, typically, days and weeks go by before a broker is given an update on the status of a submission. Approximately 41 percent of buyers and brokers answering the survey indicated carriers did a "somewhat or very poor" job of keeping them informed on submission status.

In examining the submission process more closely, Allianz said the survey found underwriters often create quotes for vastly different industries and risk
profiles. Without concentrating on specific industries, underwriters are limited in their ability to respond quickly and consistently with positions based on deep expertise.

Buyers and brokers said they find this expertise important but feel that underwriters demonstrate it only "occasionally or rarely" (approximately 50 percent).

More direct contact was also identified as a need in the survey. While an annual policy review is usually the only direct contact between buyers, brokers and
underwriters, approximately 66 percent of buyers and brokers said they would like to meet twice a year or even quarterly.

Kevin R. Callahan, chief executive officer of Allianz Global Risks US, said: "The poor level of service being provided by commercial insurance carriers is unacceptable. In just about any other industry, companies would go out of business if
they conducted themselves this way.

"The message is clear and Allianz
Global Risks US has devoted the last 12 months to changing its approach to
serving brokers and buyers?starting with improving the buying experience."

Allianz said those responding to the survey include more than 125 corporate buyers and brokers of commercial property insurance from a broad cross-section of industries. All are based in North America, and 75 percent work at companies with more than $1 billion in annual revenues.

Allianz said a final wrap-up report of all survey results will be available in June.