19 TIPS FOR GETTING RISK SUBMISSIONS ACCEPTED
We subscribe to the 'win-win' theory of negotiating when placing business with our company underwriters. The placement has to be 'right' for both the company and the insured. We treasure our long-term relationships with carriers; therefore, we make sure that the business we offer to a carrier is what it desires to write, and also that the company is best for our client.
Our agency is unusual in that many of our staff members place business with carriers, enabling each member to work closely and productively with underwriters and to establish their individual relationships and styles. We strive to provide complete information in our applications, which enables underwriters to analyze submissions properly and paves the way for closer relationships. We obtain MVRs and check and review fire rating schedules and workers' compensation experience modification calculations as a way of giving as many tools as possible to company underwriters and helping them to properly judge risks.
Much of our success can be attributed to the commercial-lines carriers we represent. Their product lines are varied enough so that our clients' risks fit the requirements of at least one company, so we rarely have to ask for an acceptance accommodation.
We provide our staff with suggestions for dealing effectively with company underwriters. These suggestions are not requirements, but each placer is asked to consider them and use those that fit his or her situation. Here are some of our current suggestions:
- Respond promptly to underwriters' requests for additional information about submissions. Your cooperation makes you an ally of underwriters and sets you apart from other agents who may not be as responsive. Underwriters are more likely to respond to your requests quickly if you act in kind.
- When a company gives you a plausible explanation for declining a submission, back off gracefully. You gain credibility that you can draw on in the future. We don't ask companies for unreasonable accommodations because that tends to undermine our credibility. We don't want underwriters to classify our office as unreasonable because that could close underwriters to future requests. So, if underwriters' reasons for declination seem sound, it's best to walk away and thank them for reviewing your submission.
- Share negative information about a submission freely with underwriters. We try to overcome the effect of negative factors by explaining why they may not be critical to the acceptance of a risk, if such is the case. When underwriters realize that you are not afraid to share negative data with them, the stage is set for acceptance, because the underwriters know that your input is dependable.
- Never challenge individual underwriters directly. We've always given them an opportunity to save face by making it clear that we're not questioning their personal judgments. We don't go over the heads of underwriters because that could damage our long-term relationships with them. We suggest that there may be facts about the risk that we should explain more thoroughly.
- Negotiate additional credits on the 'firm-order' basis. We might ask an underwriter if he or she feels another 15% credit is available if we can assure the underwriter that he or she will get the business.
- Complete submissions really do get first consideration from underwriters.
- Our companies are valuable assets. We must be ethical with underwriters and assist them in making proper risk judgments. We must understand that the underwriters stand between our agents and their managers, and that they must follow the guidelines issued by their employers. We must be aware of the risks that underwriters take. We can prompt them to accept additional risks if our past submissions have been profitable.
- When you find something that works, stick with it. Go with the underwriter who is assisting you best.
- Don't rush into mistakes. It's better to get an acceptance from underwriter 'A' tomorrow than a declination from underwriter 'B' today, simply because underwriter 'A' was not available.
- When a company declines a submission, give the underwriter an opportunity to reconsider. Perhaps we can clear up something he or she didn't understand in the submission. If we can introduce new facts, and quite often we can, we may be able to get the underwriter to reconsider a submission. Underwriters often enjoy the challenge of having agents reapproach them, but they don't want to make mistakes in judgment. We won't go back to an underwriter too often on the same item.
- When an underwriter accepts a submission, confirm it and make sure there is mutual understanding by summing up the conversation and reviewing the terms offered. This summation will be helpful to the underwriter and to you in ensuring accuracy at a later date, such as when proofreading an issued policy.
- Be gracious in assisting underwriters whenever you can. When they want to back off from a submission and you can place the business elsewhere, do so. They will return the favor.
- Offer to do something that may be difficult for underwriters to do, such as developing tentative fire rates, and keep your promise. This sets you apart from agents who are not as diligent and helps establish credibility with underwriters.
- Don't be afraid to admit that you don't have an answer to an underwriter's question, but offer to research it and report back later.
- Thank underwriters for their assistance and recognize them when they accommodate you. They also prize praise and appreciation just as agents do.
- Mix it up. Don't burden one underwriter by asking for numerous accommodations, because you could wear out your welcome.
- Don't be afraid to fail. The most any underwriter can do is to say 'No' to your reasonable request.
- Make reasonable requests of underwriters. They don't like to have to spin their wheels or be put to the test all of the time. Avoid giving conflicting instructions.
- Know your carriers' products and the classifications of business they will accept. This knowledge helps you obtain acceptances and gains the respect of underwriters, because you show you care enough to know the company before making a submission.
It's crucial for agents to have credibility with their underwriters. Taking the time to keep the agent/underwriter relationship intact and productive is well worth the effort.
Article reprinted with permission from Agent & Broker magazine.