For a broker to maintain their competitive edge and meet client expectations, the speed of an underwriter’s response to their coverage request can be crucial. Insurance Business asked three underwriters, each a specialist in a different insurance line, to give their tips, including a short five-point checklist, so brokers can send in the information that will help ensure a quick turnaround time.
“We really appreciate when brokers give us the full picture from the start including commentary on specific risk information and exposures, the claims history and what has been done to manage those risks,” said Kerryn Symes (pictured above left), NSW manager for DUAL Australia.
Symes said that allows her underwriting team to reach a decision “much faster” and also keeps expectations clear “on both sides.”
A complete and accurate application form
Clear coverage requirements
Appropriate commentary on any specific risk, exposures or coverage the broker/insured is looking to have covered or consider being eliminated
Supporting information relevant to the specific policy type including loss history
Full details of claims and additional risk management that has been implemented to mitigate any future losses.
Nick Vernon (pictured above centre), co-CEO at Scope Underwriting provided this list for brokers sending in requests for construction insurance cover:
The exposure to worker-to-worker injury on site is a major concern for underwriters. The higher the sub-contractor payments, the greater the exposure to onsite injury and this needs to be taken into consideration when setting rates and deductibles. Labour hire on site can be an even greater risk as often this is an unskilled labour force that isn’t used to the inherent risk of a construction site.
Brokers need to provide a detailed breakdown of what the insured actually does. This allows underwriters to understand the risk being insured and to properly rate for it. The more information the better.
Is the insured doing any excavation works? How far are they digging down? What is the proximity to neighbouring properties? Subsidence claims can be significant. Also used to assess the risk of damage to underground services and the risk of collapse or flooding of the excavated work.
How high are the structures that the Insured is working on? The higher the buildings, the greater the risk of falls or damage that can affect multiple levels.
Particularly important when assessing the risk of flood, storm or cyclone, etc. Also important when assessing the risk to surrounding third party property.
A clear explanation of their business activities including disclosure about sensitive information held
Detail on cyber risk control improvements implemented in recent times, for example if they have recently implemented MFA
An understanding that there is a governance approach in the business to cyber risk
The reporting of previous incidents and breaches, even if they would not have resulted in a cyber insurance claim, demonstrates awareness and their obligations to customers and regulators
Documentation: If you have an incident response plan or a penetration test, share it with the insurer. They will probably be impressed.
Are you an underwriter? Please tell us some of your tips that might help brokers improve their submissions below.
