Now is the time to focus on underwriter relationships

The softer market seems to be a topic of daily conversation. One hopes the softening will not result in the drastic under-pricing that occurred in the '90s and that instead everyone will benefit from a more moderate cycle. Be that as it may, premiums are headed down, carrier appetites are growing, and guidelines are slackening. Consequently, agents have better opportunities for placing standard business and for getting reduced pricing on surplus-lines business.

Instead of derisive laughter, agents are now hearing “maybe” from underwriters to which they send their higher-risk submissions, and “yes” on accounts that were heavily scrutinized or declined last year. Underwriters are making more phone calls and visits to CSRs. They're looking for opportunities to develop relationships with them, since they are the people responsible for marketing accounts at most agencies.

Experienced CSRs recognize the change in underwriting stance and are looking for ways to exploit it. CSRs are contacting their underwriters more because they know other agencies will be aggressively marketing, too. Relationships are being developed–both personally and professionally–between CSRs and underwriters, which should lead to improved agency results. CSRs submit business to underwriters they like, and underwriters call their favorite CSRs whenever appetites change or just to see “what's on their desk.” The question then is, how can CSRs improve their current relationships with underwriters and develop new ones? The answer is communication, recreation and consideration.

Communication

Let your underwriters know you are familiar with what they're targeting when you inquire about an account's eligibility or prepare a submission. When you preface your e-mail or phone call by stating, “I saw in your underwriting guide…,” it lets the underwriter know you've done your market research and that your submission is something of real interest, not just a “blast” submission sent out to block markets (not that any of us have ever done that). This approach also helps when checking to see if there have been any changes in underwriters' appetites.

For example, our agency writes a lot of contractors. A couple of classes with which we always have had difficulty are plumbers and HVAC contractors whose operations entail any work, however small, with liquefied petroleum gas. Although we represent nearly 20 standard markets, all of the underwriters at the companies willing to write contractors always responded with a resounding “no” to anything with an LPG exposure. Recently, I submitted such a risk to four contractor underwriters. Rather than the familiar “no,” I received two responses indicating that nothing had changed, one response that was a definite maybe with qualifiers, and one “let's talk about what you have.”

As the producer must sell the company, agency and product to the consumer, so must the CSR sell the account to the underwriter. Do some additional field underwriting before sending off that submission. Check the secretary of state's Web site for information about the customer. Drop the customer's name into an Internet search engine to see if they have a Web site or if anything has been written about them. Include any relevant information you find in your submission cover letter. I can almost guarantee your underwriter would do these things. By taking five minutes to get this information yourself, you show you've really made an effort to learn as much as you can about your client and to address any issues that may arise before the underwriter blindsides you. Put yourself in your underwriter's shoes and ask, “What would I want to know if I were going to put my money into insuring this client?”

I recently went from thinking a carpenter sounded like a great risk on the telephone to figuring he would be declined after I found his Web site. In addition to working in Texas, the Web site said the carpenter also had locations in Las Vegas and New York, which were ineligible territories for our market. When I asked the carepenter about the other locations, he said he had done work in them “once” but didn't actually have locations in those states. The underwriter still declined the risk.

Recreation

Take advantage of opportunities to meet underwriters outside of business hours. It's a great way to build relationships. Agencies often rent suites at ballparks, football stadiums or other sports venues, and invite underwriters to attend events with them. This is a good way to thank underwriters with which an agency has a lot of business or to foster relationships with underwriters with which they want to place more business.

Everyone can relax and have a good time at these events. Because most of us have spent the majority of our adult lives in this business, we also will inevitably talk shop when we get together, and we usually end up learning something that will help us during working hours–even if it is just the birthday of someone who would appreciate a card at the appropriate time. Also, if underwriters from different companies are invited, a little competition beneficial to the agency may develop. Our agency recently hosted a function at a ballpark. One of the invitees was a standard-company underwriter, and another was a broker/ MGA underwriter. As we all discussed accounts, those the standard insurer's underwriter said he would not write, the broker said he would. Interestingly, as the evening wore on and various accounts were discussed, the standard underwriter's guidelines loosened (at least for that day).

Consideration

While agencies and CSRs sometimes invite underwriters to social events, they more often receive invitations. Much like the buyer in the sales process, the CSR is solicited, since she is usually the one who directs the marketing process and influences where business is placed. By being a gracious and considerate guest, she can ensure that her agency will stay at the top of the list for insurer expenditures and be the first to know about new products, new lines and changes in appetite or underwriting guidelines. Being the first to hear of such changes can give an agency a priceless competitive advantage. Furthermore, the camaraderie that results from developing friendships and sharing insights can help a CSR in all areas of personal and professional development.

The most successful people in this industry always look to learn something new and make the necessary friends to do so. Couldn't we all use a few more friends?

Keri Morris is middle market manager for LegacyTexas Insurance Services Inc., a subsidiary of LegacyTexas Group of Plano, Texas. Ms. Morris was named 2004 Texas Outstanding CSR of the year by the National Alliance for Insurance Education & Research and also was a finalist in the national competition. She has published articles on customer service in several industry journals.