Broker Survey: A Loss Control Dept. Keeps Clients

Broker Survey: A Loss Control Dept. Keeps Clients

NU Online News Service, Oct. 15, 10:52 a.m. EDT?An internal loss control department can be a major factor in helping insurance agencies retain clients, according to a survey of members of an independent insurance brokers network.[@@]

The findings were announced by RiskProNet International of Menlo Park, Calif., which includes 28 independent insurance brokers in the United States and Canada.

Two-thirds of the firms have loss control departments.

RiskProNet said its poll of members with loss control departments found 75 percent said they have the departments to service existing accounts, 75 percent said to acquire new business, 42 percent to differentiate themselves from the competition, and 16 percent to negotiate with carriers. Companies gave multiples answers.

RiskProNet said a difficult decision for agencies is determining how to charge for loss control services: some agencies offer it free, some may offer a combination of complimentary and fee-based services, or individual brokers may pay for loss control services out of their commissions.

According to RiskProNet, members loss control services are most important for accounts in the premium range of $100,000 to $500,000, while larger accounts often have their own on-site staff.

RiskProNet brokers said it was hard to know whether an account stays because of loss control alone, but it helps with carrier relationships and strengthens agency positions at renewal time.

Brokers said a major challenge in running a loss control department was finding the right staff members.

RiskProNet member feedback also included advice that agencies should analyze whether a loss control department will be a value-added service to clients, and be sure everyone agrees that the answer is yes.