Why Agents Bidding Against Each Other Isn’t Ideal:
- The First Submission Advantage: In commercial insurance, the agent who submits your account to a carrier first is the only one who can obtain a quote from that particular company. Engaging multiple agents who simultaneously approach carriers can hinder your preferred agent from accessing quotes with the best carrier for your needs. This outdated practice puts you at a disadvantage, as it limits your agent’s ability to provide added value and specialized services tailored to your business.
The Power of Agent-Underwriter Relationships:
- Quality Business Attracts Better Rates: Established agents build strong relationships with underwriters, who assess the quality of the risks presented by the agent. Reputable agents, like PrimeRisk, thoroughly vet the risks they bring, ensuring that only well-managed accounts reach the underwriters. Underwriters recognize the agent’s commitment to submitting clean, well-managed risks and are more inclined to provide their best rates. Moreover, if an account requires improvement, agents with proven systems can implement measures to enhance the account’s performance, convincing underwriters to consider the risk.
The Importance of Carrier-Level Bidding:
- Let Carriers Compete for Your Business: Instead of having agents bid for your account, the focus should be on carriers bidding for your business. Your agent’s role is to present your risk to carriers and have them compete to provide the best rates and coverage. Carriers value well-managed risks and are more likely to offer competitive rates when they know an agent with a strong reputation has submitted the account. By bypassing the agent-level bidding process, you can access superior carrier options and secure more favorable insurance terms.
Embracing a New Insurance Paradigm:
- Seek Agents Providing Value Beyond Insurance: To ensure your business receives the maximum benefits from your insurance program, it’s essential to find an agent who goes beyond traditional insurance services. Look for an agent who can offer additional value through training programs, employee handbooks, HR services, and loss control services tailored to your specific needs. By partnering with such an agent, you gain access to comprehensive support that can enhance your business operations and profitability.
Conclusion: The insurance landscape is evolving, and it’s time to adopt a more effective approach. Move beyond the agent-level competition and embrace a system that allows carriers to compete for your business. Choose an agent who prioritizes building relationships with underwriters and has the resources to provide value-added services. By doing so, you can save on your insurance program while benefiting from comprehensive support and expertise beyond insurance products. Contact PrimeRisk to explore how their innovative approach can benefit your business.
Call to Action: If you’re ready to experience the advantages of a modern insurance approach, schedule an appointment with our team. Visit our website and click on the “Request Consultation” button at the top to access our calendar and book an appointment. Discover how our services can transform your insurance program and help your business thrive. Let’s do things differently together.