Commercial Renewals

[thecommercialguy]

@nyc2phi - A letter in our case would consist of a 1-page elaborating what changed and what didn't. This is an overview of course. After some variations, the most helpful for the buyer seems to be a simple chart you paste into the letter than shows what the previous exposure/rate was and what the renewal exposure/rate is. By having % difference in exposure and separately for rate, the buyer can see whether the rate is unfairly increased or if the adjustment in premium is strictly in line with the exposure adjustment year-over-year. This is also helpful for us in regards to decreasing the amount of follow-up required because being clear about the numbers helps the contact show it to their team, or to their boss (if the organization is large enough). Let me know if you want to speak further.

Hayato
closingcommercial.com

 

[noel1993]

All great ideas for renewals. In person does sound like the best way for at least most clients. Thanks

 

[MrGolf]

What is the form letter, just like a letter from the agency saying thanks for the business?

In part, yes. But the bigger thing is that it asks the insured to look at their policy and make sure everything is as they feel it should be (even though this has been done internally at the agency), reminding them of year end audits, etc. We have form letters varying by carrier, line of business (package, WC, etc.) and industry type (petroleum marketers, wholesalers, basic retail, restaurant, lumber mills, etc.) and each one just follows the same form. If there is a risk that is a little quirky on one of them we readjust the wording to make a specific point to that exposure or coverage/non-coverage issue.

Serves as a little layer of E&O protection for us.

 

[kristophmarsh]

I think it's very important to inform your clients of their uninsured risks.

Many programmes get old and stale over time, and clients need to be reminded about the options available. After all, if your client has a loss which could have been insured, but a solution wasn't offered, you're on the hook. And even if they don't take you to court, you'll probably lose them as a client in the very least.

Of course, not all policy lines are appropriate for all businesses, but it's really your responsibility to inform your clients of their risk exposures. As insurance advisors, you need to see yourselves as risk managers who are just as important as any accountant or lawyer. Even if it's just for the sake of providing good customer service; because if you're not going to lay out the red carpet for your clients, someone else will.

As a bare minimum, I suggest raising these discussions/suggestions on a yearly basis and documenting the process. Clients will be clients, and you'll never know when you have to fall back on "I told you so" as a defence. In the long run, your clients will be happier, you'll sell more coverage and reduce you PI exposure at the same time.