Self-Insureds Report Difficulties In Getting Quotes, Closing Claims

This trend, he said, could be explained because some managing general underwriters are no longer in business. Zoeller also said producers are “more likely to go to alternative managing general underwriters and control the presentation to the client.”

He said 82% of those surveyed reported more problems with claims disputes. The survey found MGUs and primary carriers are “caught in a squeeze between their reinsurers and their producers,” he said.

Zoeller noted a comment from one survey respondent who said the greatest problem facing the insurance industry today is “over-reacting to almost everything.” He added that from the perspective of self-insureds, “I think the year 2001 might, indeed, deserve the label, the year of over-reacting,” but only time and a fully developed claims history “will tell the whole story.”

Several survey respondents “decried the lack of true partnership” in what they felt had become a commodity business, Zoeller explained. Respondents said brokers, MGUs and carriers are “not being true partners,” he said.

Almost 70% of those surveyed, however, preferred dealing with carriers directly to MGUs.

According to the survey, 80% of all quotes have included an average rate increase of 36% over in-force premiums, Zoeller said.

When increases seemed “unreasonably high,” he said, repondents said they ask the underwriter for a requote, seek an additional quote from another source, and recommend a higher deductible.

Caroline McDonald is an associate editor of NU’s Property & Casualty edition.

Reproduced from National Underwriter Life & Health/Financial Services Edition, October 22, 2001. Copyright 2001 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.

Copyright 2001 by The National Underwriter Company. All rights reserved. Contact Webmaster