Episode 15 of ADJUSTED explores bridging the gap between claims and underwriting, the role agents play in commercial insurance, and navigating a business rooted in people.

Bridging the Gap

WHAT IS UNDERWRITING?
The most basic definition is assuming the risk for a premium (fee).  Commercial Underwriting tries to learn a lot about many different types of businesses. They gather and analyze a business and determine what premium should be charged for assuming that particular risk. They learn about the inner workings of a business and how they operate. They are part of an Insurance Carrier, and they work with Independent Agents/Agencies.  Independent Agencies work with the owners of businesses, and they put together an insurance program for them. The agents will work to match the owners with a carrier that best suits their needs. 

THIS IS A RELATION BASED INDUSTRY:   
The Agency Partner is so critical to the overall process of being a successful carrier; it has to start with trust. Trust is everything. Agencies have a plethora of different carriers they can use, so communication and honest conversations are essential. Each carrier tells them that they are the best; you need to show them what makes you the best. Make sure you have the same vision and goals. If you are a carrier in growth mode, align with an agency in a similar phase to have the most successful results. 

BREAK WITH TRADITION:  
Traditional Insurance Carriers do not have their claim departments interacting with their underwriting departments. Most adjusters do not know who their underwriters are because they never communicate with each other. Most carriers do not have claim departments involved with agencies/agents. This model does not work well.  When claims teams are kept at arm’s length, agents have less trust in their carrier. Underwriters cannot assess a proper premium at renewal time because they cannot speak with the adjuster about the direction of the claims. When the departments do not align, it is like operating in a vacuum. When claims teams, underwriters, agents, and owners all communicate, they build a strong, synergized working relationship. When you build a bond based on trust, expertise, and skillset, pricing will not be the number one issue at the next renewal.

COMMUNICATION IS NOT ENOUGH:
It has to be the right kind of communication. Ask your customer what is important to them.  Listen to them, and have a clear understanding of what they want.  Some customers do not like phone calls and prefer email because they are so busy. Some customers want communication after each doctor’s appointment, and some just want information given every quarter. Make sure it is tailored to their needs. If an adjuster calls them on the phone when they have asked for an email, it can be a challenging start to the relationship. To avoid future pitfalls, have these important conversations at the start of the onboarding process. 

THERE IS A BIG SHIFT IN THE INSURANCE INDUSTRY RIGHT NOW:  
The insurance industry is a very broad industry, with several types of career paths, such as underwriting.  For people who are thinking of a possible career path:  give insurance a chance.  It is a people business, and it always will be. Technology and automation have enhanced the industry, but they will not replace people. Customers still want the human touch, such as empathy and compassion, along with the technological advancements to improve the processes. Learning how to combine them will build strong relationships and will make your carrier the difference-maker.