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... x No Thanks Loading.. Finding Markets: The Specialty Program Consultant 4/30/2013 by Andrew Barile , CompleteMarkets Editor This content has not been rated yet. While a reinsurance intermediary operates between the ceding insurance company and the reinsurance company market, the specialty insurance program consultant operates between insurance agents and the insurance company. This document by Andrew Barile introduces you to this emerging type of consultant. Program brokers, marketing insurance consultants, and specialty insurance program consultants have all existed for a number of years. They perform a valuable service for an agent, and should be part of the agent's cadre of experts, together with lawyers and public accountants. Without a suitable insurance company market the agent can't exist. Insurance company market finders perform a unique service that agency staff members can't always perform on their own. The first question agency owners ask is Why should I pay a consultant for a service that I, the owner of the agency, should be able to perform myself? ' Certainly visiting with insurance company markets is an owner's function. However, agency owners should quantify their time spent on an hourly basis. How much time do they really want to spend developing new company markets? Some consultants have adapted a formal approach to representing insurance agencies by using an engagement agreement, ' or a consulting services agreement' which outlines the specific services that the consultant will perform, and the cost of these services. After providing agencies with this service for more than 25 years, I've noticed that each engagement agreement is different. Consultant's fees vary from a single flat fee to a specific ...

... x No Thanks Loading.. Cut-Through Endorsements 4/30/2013 by CompleteMarkets Editor , IIABA Virtual University Faculty IIABA Virtual University Faculty This content has not been rated yet. CUT-THROUGH ENDORSEMENTS &# 160 by the IIABA Virtual University Faculty &# 160 Sometimes when an insurer encounters financial problems, cut-through endorsements will be issued. Both the primary carrier and reinsurer usually attach a cut-through endorsement to the policy. The endorsement should specifically reference the policy by number and policy term. This document by the IIABA Faculty investigates what the endorsement actually represents. &# 160 &# 160 Our "Ask an Expert" service recently received this question: &# 160 "We have just received official notification of Best downgrading one of our companies (let's call them ABC Ins. Co.) from an A- to a B+ rating. Best reportedly has them under review with ‘negative implications. ABC's press release indicated that XYZ Ins. Co. will be providing a cut-through endorsement which, and I am quoting, ‘ .. means that ABC policies issued under the agreement are backed by the A++ rating of XYZ. &# 160 "Since the cut-through endorsement is between ABC and XYZ, the insured has no direct contract with XYZ should ABC go under. What problems will we — or our clients — experience if we have to look to XYZ for coverage under the ‘indirect' contractual relationship our clients would have with XYZ? What legal or regulatory support would we have to help us deal with XYZ? &# 160 "There is debate among our staff ...

... workable, consider bringing in a person to maintain those relationships for you. That person is the perfect addition to your Strategic Advisory Board. Working together with your specialists in Mergers & Acquisitions, Agency Growth, and Legal/Tax Advice, your Carrier Relations expert will enhance your agency's overall performance and growth. BUILD YOUR AGENCY-CARRIER RELATIONSHIP The first step to building agency-carrier relationships is to review your agency's operating budget. Although this might seem obvious, all too many agencies neglect to carve out a piece of their budget to maintain carrier relationships. It's important to allocate a certain amount of commissions in your operating budget to maintain relationships with carriers. Next, select a member of your Strategic Advisory Board to represent the agency in fostering agency-carrier relationships. The candidate should have access to senior executives of insurers and reinsurers, as well as experience in dealing with executives at such major industry events as AAMGA, NAPLSO, and NAII meetings. Your expert will also need a solid understanding of the reinsurance marketplace. Carriers often tell agents that their agency contract is cancelled because the carrier has lost its reinsurance, and has to stop writing business. Your Insurance Company Strategic Advisor will need an in-depth understanding of how carriers structure their reinsurance and how reinsurance drives the underwriting cycle. Finally, look for someone who understands financial statements and insurer insolvency, as well as insurance company product development. Now that you have your expert in place, the real work can begin. Your Insurance Company Strategic Advisor will spend significant time on the road making contact and networking with the heads of the carriers you represent. This will solidify ...

... sell directly to the customer, but most generate sales through the insurance agency system. A true specialty insurance program has unique characteristics that distinguish it from a standard insurance submission-say, the underwriting of a specialty class of business requiring expertise in exposure analysis, or rates and forms that deviate from normal terms and conditions to satisfy the customer's insurance needs. One often hears of a specialty program formed for restaurants, taverns, or certain construction trades, but I don't consider these specialty programs because an abundance of standard and nonstandard insurance companies will compete for this business with standard forms and rating criteria. In a genuine specialty program, only a limited number of insurance companies have: The understanding or desire to compete for the class of business The rates or forms necessary to rate or insure the exposures properly Individual reinsurance treaties in place to give the primary carrier the flexibility and capacity necessary to insure the underwritten class Keep in mind that standard reinsurance treaties, like standard ISO forms, exclude certain Liability and Property exposures, which in turn restrict the underwriter's ability to compete for many classes of business. For the most part, a program offers multiple-line coverages to their prospective clients. Exceptions include Professional Liability, Pollution Liability, Errors & Omissions, Directors & Officers, and Products Liability policies. PAs have even progressed to the point of employing loss-control representatives who have the expertise to specialize in the underwritten class. My firm underwrites the outdoor recreation industry, including such business as resorts, dude ranches, outfitters and guides, trap and skeet clubs, hunting and fishing lodges, hunting leases, snowmobile tours, RV ...

...nior executives of insurers and reinsurers, as well as experience in dealing w...

... Required) Please consider the following: 1. Would you recommend this company? 2. What about this company do you like/dislike? 3. Why did you choose this rating? Submit This Anonymously Submit Cancel Contact Us contact_phone Click to call Unfollow First name: Last name: Email: Are you sure you want to deactivate your CompleteMarkets Company Profile Deactivate Cancel Loading.. About Us Services Jobs PR Newsletters Employees Articles Blog Photos Group Connections Reviews IMMS Library Immerse yourself in our stacks. Take some time and browse through our library. We have thousands of articles, checklists, tip sheets, sales letters, and more! Communications Marketing Customer Service Planning Finance/Accounting Risk Management Human Resources Selling Legal and E&O Technology Life/Financial Services Glossaries Management Resources & Links Categories Popular Recent All reinsurance Articles tagged with reinsurance Back Agents: Company Markets Aren't Always Going To Come To You! 1 Verified Reviews - 5 of 5.0 1 2 3 4 5 Andrew Barile , CompleteMarkets Editor 4/30/2013 12:00:00 AM AGENTS: COMPANY MARKETS AREN'T ALWAYS GOING TO COME TO YOU! by Andrew Barile One of the most important responsibilities of agents to themselves and their agencies is to maintain posit.. All Articles by Andrew Barile Comments (0 ) Consultative Brokers In A Changing Market This content has not been rated yet. CompleteMarkets Editor , C.R. Ekern 4/30/2013 12:00:00 AM CONSULTATIVE BROKERS IN A CHANGING MARKET by Rob Ekern Those of us who entered the business more than 20 years ago have seen two or three market cycles. We had ...

...y are the roots of the problem. Reinsurers have experienced the same losses th...is problem is the vulnerability of reinsurers. Ask your primary carriers about their reinsurers and monitor their Best ratings. ...

... clients and your carriers is the best way to protect all parties and sets your agency apart as a professional and ethical entity. Ken Buehler examines the added strains that current market conditions have placed on agencies. Moving from a soft to a hard market can make placing business and arranging reasonable pricing very challenging for an agency. A hard market brings a heightened awareness of a number of factors. Many of the changes won't manifest themselves immediately, but when a loss occurs later and isn't paid or is paid at a fraction of what the client expected, the client and their attorney will look to the agency to fund the loss, knowing that the agent normally has E&O coverage. Investment losses, underwriting losses, and a general loss of underwriting capacity are the roots of the problem. Reinsurers have experienced the same losses that primary companies have and must charge more for less coverage (or for more restrictive coverage) . Of course, the primary companies must react accordingly. Agents must take the initiative in a number of areas to protect themselves and their clients: Coverage reductions and restrictions Financial vulnerability of companies Occurrence vs. claims made policies Agency relationships with carriers Standard markets vs. surplus lines markets Communication levels with clients and companies In a hard market, agents spend more time renewing business. Many agents say that they have less time to go through the additional safeguards needed in a hard market. Considering the time an agency would have to spend on an E&O claim, time spent on additional safeguards might be a good investment. With an E&O claim, no ...

... Harriman This content has not been rated yet. The international insurance market offers a variety of benefits to independent agents and brokers. It provides a perfect tool for solidifying your Commercial Lines accounts and insulating them from inroads being made by alphabet house brokers. International insurance operations also offer an entree to new product lines and markets that will expand your facilities abroad. For example, U.S. agents can introduce their expertise in such lines as Auto, Medical, Surety, and Workers' Compensation to third-world countries that are privatizing these coverages. Canadian brokers can expand their expertise in out-of-country private Medical insurance and, potentially, Workers' Compensation. Doing business abroad can introduce agents and brokers to new international markets, both primary (with such carriers as AGF, Allianz, Generali, and Winterthur), and reinsurance/variable insurance programs (financial reinsurance, stop-loss reinsurance, catastrophe reinsurance, etc.) . The international market encompasses the national accounts division of major companies, offering creativity, capacity, and flexibility, enabling the agent or broker to approach accounts on a broad basis. Examples include Aetna, AIG, Chubb, Great American, The Hartford, and Reliance National. Agents and brokers can access the captive market either by establishing a captive for a corporate client or renting a captive to facilitate international exposures, self-insured retentions, and a potential profit center. The international market has captive facilities in such locations as Bermuda, Barbados, Ireland, Guernsey (the Channel Islands), and Luxembourg. BUILDING EXPERTISE AND INTERNATIONAL KNOWLEDGE AIG Chairman Hank Greenberg highlighted the success of operating internationally at the 1992 IMMS ...

... Harriman This content has not been rated yet. The international insurance market offers a variety of benefits to independent agents and brokers. It provides a perfect tool for solidifying your Commercial Lines accounts and insulating them from inroads being made by alphabet house brokers. International insurance operations also offer an entree to new product lines and markets that will expand your facilities abroad. For example, U.S. agents can introduce their expertise in such lines as Auto, Medical, Surety, and Workers' Compensation to third-world countries that are privatizing these coverages. Canadian brokers can expand their expertise in out-of-country private Medical insurance and, potentially, Workers' Compensation. Doing business abroad can introduce agents and brokers to new international markets, both primary (with such carriers as AGF, Allianz, Generali, and Winterthur), and reinsurance/variable insurance programs (financial reinsurance, stop-loss reinsurance, catastrophe reinsurance, etc.) . The international market encompasses the national accounts division of major companies, offering creativity, capacity, and flexibility, enabling the agent or broker to approach accounts on a broad basis. Examples include Aetna, AIG, Chubb, Great American, The Hartford, and Reliance National. Agents and brokers can access the captive market either by establishing a captive for a corporate client or renting a captive to facilitate international exposures, self-insured retentions, and a potential profit center. The international market has captive facilities in such locations as Bermuda, Barbados, Ireland, Guernsey (the Channel Islands), and Luxembourg. BUILDING EXPERTISE AND INTERNATIONAL KNOWLEDGE AIG Chairman Hank Greenberg highlighted the success of operating internationally at the 1992 IMMS ...