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November 17, 2002 at 07:00 PM
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We all have increasing demands placed on us. A customer needs one product then changes his mind and wants something else. Carriers continually evolve their pricing and standards.
As a producer, you need business partners who will make your life easier. One way to find such partners is to work with underwriters at brokerages and insurance companies that understand your needs. How? The chart shows four characteristics to look for in your underwriters. Well review each characteristic here.
Knowledge. It is critical that the underwriter demonstrate knowledge of many companies, many products, and many underwriters. Virtually every case involves more than one company and at least one competing agent or broker, so such knowledge is essential.
As part of this knowledge, a good brokerage underwriter will be able to guide you through the informal and professional application process.
Informal inquiries and trial applications are a reality of the brokerage marketplace. Perceptions and stereotypes regarding informals are often negative, however.
Much of this negative perception can be attributed to the practice adopted by some brokerages of blast faxing informals to many companies–informals that contain huge and poorly prepared files concerning uninsurable or very seriously impaired risks. Typically, these blasts are devoid of summary, analysis and authorization.
Understandably, informals having such scant preparation do not produce positive results. Zero-to-one percent placement rates characterize this category.
By comparison, professionally submitted informals–those that are summarized and analyzed, accompanied by signed authorizations, and that include a range of competitive offers already obtained on the case–have a much better chance.
When brokerages submit such informals, underwriters do, of course, give consideration to the impaired risks about which they are written. But you can achieve far better success if you precede the submission with a telephone call discussing the key factors in the case. Following such preliminary reviews, everyone has a better shot at arriving at successful competitive results.
In short, the professionally submitted category should produce a double-digit placement rate.
Complexity. Brokerage life insurance transactions are often complex because of insurability issues, older ages, serious medical conditions, larger dollar amounts, hazardous avocations, adverse driving records, life style issues. All of the above typify brokerage life insurance applications. Your underwriter should understand these issues and guide you through them.
