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Business Insurance Broker Tips: Choosing Your Insurance Underwriter

Business Insurance Broker Tips: Choosing Your Insurance Underwriter

By Neil Magee
21/09/2015

In many cases the main criterion for selecting an Insurance Underwriter for your insurance protection comes down to the issue of price.

However the strength and integrity of the relationship between “The Insured” and “The Insurance Underwriter” is very important – in fact at Austral Risk Services, we would argue it is critical because at the end of the day, this determines how satisfied you are with your Insurance Underwriter and how well the insurance policies’ respond to an incident or claim.

How to assess and consider the selection of Your Insurance Underwriter in 8 steps

There are two parties to the insurance contract and in the event of an incident which may give rise to a claim, it is essential the Insurance Policy terms and conditions are clear and concise – and respond to your particular risks and exposures requirements.

The major factors which influence the selection of your Insurance Underwriter will differ for each class of insurance however here are 8 steps which Austral recommend should form part of your decision making process.

  1. The Financial Security and Credit Rating of the Insurance Underwriter – does the credit rating meet your financial requirements?
  2. Does the Insurance Underwriter fully understand the risks and exposures of the class of insurance being proposed?
  3. The Insurance Underwriters’ experience and knowledge of the class of insurance – how many years have they been underwriting this type of risk?
  4.  The service support and claims management expertise of the Insurance Underwriter with the class of insurance – have they got a good track record?
  5. Has the Insurance Underwriter had experience with large and/or complex claims settlement – is their reputation good?
  6. Is the Insurance Underwriter heavily reliant upon their Reinsurance Underwriters in underwriting this class of insurance? Should your Insurance Underwriter be totally reliant upon their Reinsurer, it is unlikely they can make a decision on Policy Wording interpretation or importantly a claim!
  7. The Insurance Underwriters experience and involvement of similar risks and their attitude towards long term commitment. Are they able to demonstrate their expertise?
  8. Is the Insurance Underwriter involved in other classes of insurance within your Insurance Program? Can the Insurance Underwriter assist you with other classes of insurance?

There are other considerations which may be included. Knowledge and understanding of your particular risks and exposures will influence your insurance decision further however this is a good base to begin your decision making process.

In many circumstances you may have a good understanding and appreciation of your risks and exposures to determine the most appropriate insurance protection required. An experienced insurance broker will help guide you in this area.

Austral has experience, capabilities and resources to assist you in this process. If you need help with determining the right Insurance Underwriters for your business, please call us on 08 9344 6650 or email us on info@australrisk.com.au to schedule an appointment with one of our experienced business insurance brokers.

 

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