WIN Magazine - Summer 2012 - (Page 24)
The past five to seven years have been a prime opportunity for carriers to make investments in technology to prepare for the changing market. Wholesale producers need efficient solutions to rate, quote, bind, issue and endorse policies. They also need systems and processes that require fewer steps, eliminate duplication in data entry and help protect agent E&O exposure, and they need these solutions for all their products. Underwriting follow-ups from carriers back to wholesalers need to be minimized if not eliminated. It’s very clear each time a wholesaler touches a policy they lose money. So it’s first time final – once and done. Carriers need the same kinds of tools to help analyze risks. They also need to help wholesale partners by processing and servicing quotes and policies in an efficient manner. Rating must be very accurate and it must return rates and forms quickly. If a wholesaler has its own rating system, it must be able to leverage investments while at the same time using carrier resources
BY GREG RICKER ATLANTIC CASUALTY INSURANCE COMPANY
HE TIME WE’VE awaited has finally arrived. The economic outlook is positive, market c ond it ion s a r e changing, pricing is trending in an improved direction and submission activity is increasing. But are wholesalers and carriers ready to capitalize on this opportunity? It’s no secret the past couple of years have been challenging at the company and agency levels. With reductions in rates, premiums and submissions, there have been few alternatives to help the bottom line but to reduce expenses, which in many instances have meant a reduction in personnel. With the market changing, what’s your plan to handle the growth while keeping a lid on expenses? For the agency owner, the answer is pretty simple: technology and process efficiency. On the carrier side, we must use technology to help maintain our underwriting discipline and help our wholesalers meet their objectives.
for rating, forms and policy issuance. There is no value in having wholesalers maintain rate, rule and form when the carrier is already doing it. The wholesaler needs to reallocate resources being spent on this activity and focus on underwriting and sales. I n 20 07, At l a nt ic C a su a lt y Insurance Company saw this exact opportunity. While we wished we could have predicted exactly when the market change would start, we knew after a few years the cycle would be starting and we needed to prepare. We had to act quickly, so we started defining the vision and our course immediately became clear. We needed to be the low-cost provider for rating, quoting and issuing policies to agency partners, while at the same time not compromising rate, rule or form from an underwriting perspective. Sure, we had to offer competitively priced products, but we had to make the process for the wholesaler one where they would maximize the money they are making underwriting and selling our policies, and we are
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Table of Contents for the Digital Edition of WIN Magazine - Summer 2012
Another Liability Catastrophe in the Making?
The Economy and the Insurance Pricing Cycle 2012: When Good News is Bad News
Capitalizing on Supplementary Coverages: MPL & Excess/Umbrella Policies
Are Your Technology Solutions Enabling Your Business?
NRRA Implementation: What Lies Ahead for Wholesalers and Producers
State Taxation of Non-U.S. Risk Premium
Rick Transfer Techniques for the American Wheat Farmer
Cyber & Reputational Risk Insurance: Past, Present, & Future
In the WIN-ner’s Circle
INDEX TO ADVERTISERS/ ADVERTISERS.COM
WIN Magazine - Summer 2012