Thorough Insurance Submissions Streamline Underwriting Process, Help Sales Process
Submissions for underwriting over the years has been streamlined somewhat in our industry, depending on the industry, class of business, complexity of the risk, and the coverage line. In some cases, there’s been a shift from the agency to the underwriter in gathering the information on a submission. In many cases, however, to effectively underwrite an insured, it’s critical that an agency get the information required upfront, doing his or her homework and making sure there are no gaps on the application.
An underwriter needs all the information at his/her fingertips when evaluating an account for exposures, coverage limits, rating, etc. This means receiving a summary of the account, a completed Acord form, and any supplemental information. It also means including three- to five-year loss runs with details on large claims. What also makes a thorough submission is having the incumbent agency details, the date by which the broker needs the declination/acceptance and premium amount, and the carriers that the agent has approved. And, of course, if possible, a 60- to 90-day lead-time is helpful so that smart and profitable underwriting can be accomplished.
Also, depending on the coverage line, additional forms may be needed. For example, for Fiduciary Liability insurance, a Form 550 (financial statements of a pension plan) is essential to the underwriting process. With EPLI, it’s absolutely essential that an underwriter knows the number of locations, number of employees, the type of employees, whether the employees are union or not, what type of losses have occurred in the past, among other key factors.
Providing complete submissions expedites the underwriting process, eliminating a lot of back and forth – which ultimately helps the agency close the sale on a new account. Also, thorough submissions is part of the overall transparency needed between agent and wholesaler, MGU, and carrier. It serves all parties and helps the broker develop a greater book of business with the partner he/she relies on to write accounts.