1 / 17

Excess & Surplus Lines: E & S

Excess & Surplus Lines: E & S. Business that does not qualify for our “Standard Markets” (which might also be thought of as the “Preferred Markets”) can usually be quoted and written in one of IHT’s brokers for “Hard to Place” risks. Three of our brokers are: Arlington Roe

leonard-fuller
Download Presentation

Excess & Surplus Lines: E & S

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Excess & Surplus Lines: E & S Business that does not qualify for our “Standard Markets” (which might also be thought of as the “Preferred Markets”) can usually be quoted and written in one of IHT’s brokers for “Hard to Place” risks. Three of our brokers are: Arlington Roe Appalachian Underwriters Bloss & Dillard

  2. A Couple of Things about E& S More work: Always requires Acords. Must be rewritten every year. Less Pay: Commissions are about half of what they are in our Standard Markets.

  3. VERY IMPORTANT E & S carriers: DO NOT HAVE PAYMENT OPTIONS. REQUIRE 25% EARNED PREMIUM… …with NO flat cancellations. (That means that if you cancel the policy a week after it is bound the insured STILL owes 25% of the annual premium.)

  4. VERY IMPORTANT, Con’t And here’s the kicker: IF YOU BIND COVERAGE, YOUARE RESPONSIBLE FOR THE PREMIUM…EVEN IF YOUR CLIENT’S CHECK IS NO GOOD! So if you bind an E&S policy and your client changes his mind or does not pay for any reason, IHT will withhold the Earned Premium from your commissions.

  5. Nonadmitted Carriers Many of the carriers are Non-admitted. This is disclosed on the declaration page. That does NOT mean the carriers are not financially sound.

  6. Taxes and Fees E & S policies frequently have Taxes and Fees. Of course you do not get paid on those costs

  7. Financing of Premium Since the carriers require 100% premium, the brokers make additional revenue (you don’t) by providing financing at an outrageous interest rate. Most insured’s who need the policy pay it. Typically the down payment is 25% of the annual premium…to cover the Earned Premium.

  8. Another point about E & S polices Coverage forms are often restricted compared to Standard Markets. When you go to the E & S markets it is more about just getting a policy in place. E & S coverage forms are better than no coverage at all.

  9. Why would you write E & S? About the only reason to write an E & S policy is to accommodate an otherwise good client… …who may have a vacant buidling, Or another “piece” that does not qualify for Standard Markets of an otherwise good account. It is All About ACCOMMODATION

  10. Fool hearty It is fool hearty to write a “stand alone” E & S account…while some other agency benefits from the “easy” policies of the insured. Do not proceed unless the Prospect assures you (and you have confidence in that assurance) that he/she will move the easy policies to you.

  11. The APPROACH Before you go through the exercise of getting an E & S quote PREQUALIFY! Find out what the Minimum Premium is likely to be and ask: IF the cost is (say) $1500 will you proceed?

  12. PREQUALIFY You will rarely have a premium of less than $500 for an E & S policy…and $2500 minimum premiums are not unusual. Don’t waste your time getting the quote if you know the prospect can’t or won’t pay the premium.

  13. If You Want to Proceed . . . . . .Follow commercial sales process steps two through eight, as usual AFTER YOU GO BACK AND READ THESE 13 SLIDES AGAIN. The next four slides are Remarks from and E&S Broker. One reading of those remarks should be sufficient.

  14. Remarks from a wholesale broker: 4 Points Let me tell you a little bit about what I see: 1. far too many incomplete applications, with pertinent information nowhere to be found. What does your client do? If you don't know, or can't explain it succinctly, how will I be able to sell it to someone else? And don't simply refer me to their website, unless you have already reviewed it. You have no idea how many times the website has sunk a deal...

  15. 2. No control of the account The client calls you on the phone, out of the yellow pages. He has called 5 other agents, too, and now everyone is tripping all over themselves to quote this account. Except when you send it to me, and I send it out to market, and we're blocked by the other 4 retail agents already. If the client is a phone-in ,don't be afraid to ask them --have you already sent this out to market? Because if they have, what is your real chance to win the account?

  16. 3. Unrealistic Expectations This can range from pricing to quote date...trust me that the underwriter has already heard "my client is going out of the country for 3 months, and needs his March 1 renewal by 12/31". Not going to happen, really.

  17. 4. Understand E & S Understand what the E&S/MGA side of the market does -- we don't compete with the standard markets on pricing. We are here to write risks they won't write, due to losses, or unusual exposures. If it's a clean, main street, piece of business, send it to your Preferred carriers. When it's something that is too old, or has losses, or they manufacture heart valves to be inserted in the body, call your wholesale broker.

More Related