Inside the Mind of a Subscriber – Demystifying the Subscription Process

Have you ever wondered who that person behind the curtain is? Contrary to what you may think, he is not the Magician, but the underwriter of the insurance company. Believe it or not, there is a real, living person on the other side of your insurance contract. The underwriter is the central figure in determining what he will pay for his insurance. Wouldn’t it be nice to know what makes a subscriber happy? On the contrary, wouldn’t it be nice to know what annoys a subscriber?

There is a direct correlation between the quality of information provided to your insurer and the price you pay for insurance. As the old adage goes, the less you put in, the less you get. The more you put in, the more you get. I know what many of you are thinking; “I’m not the one filling out the application, he’s the broker.” This is, of course, true; but if you give the broker poor information, the underwriter will get the same poor information.

As brokers, we fill out applications with endless “subscription questions.” If you’ve ever quoted your insurance, you know exactly what I’m talking about. What seems mundane to you is very important to the subscriber. I’m sure you’ve asked yourself (and your broker), “why do they want to know that?” Trust me; there are valid reasons for the subscriber’s questions. Simply put, the better the information provided, the better the quote.

Are there multiple named insureds? Wouldn’t it be wise to list all named insureds and give a description of what they do? If you know you’re going to bid, make sure you have at least four years of currently valued losses before asking someone to bid. There’s nothing worse than submitting a lossless presentation only to find out three weeks later that your losses are much worse than you’ve been led to believe. You know the agent is going to ask for a complete list of drivers; Why not have it ready? Are they assigning markets so that the agents of the competition do not go to the same companies? Should.

Have you ever taken a good look at your website? Is it completely accurate? Are there perhaps some things on the website that are not completely true? Business owners are proud of their company and its capabilities. Sometimes they have a tendency to brag about things they don’t do (or haven’t done). For example, a manufacturer might say that he is capable of producing products for the aerospace industry when, in fact, he never has. They are capable? Sure they are, but they never have.

Subscribers actually look at your websites. In fact, good insurers look at it with a magnifying glass. What could be a source of pride for you (example above), is a red flag for the insurer. Do you think your subscriber will be pushy or even quote an account that works in the aerospace industry? Not in a million years! I know it’s tempting to exaggerate your capabilities, but keep in mind that your prospects aren’t the only ones looking at your website. It only highlights what you really do, nothing more and nothing less. Do not give the subscriber reasons to ask more questions, especially if they are unwarranted.

I’d be turned in if I didn’t mention the relationship between the underwriter and the loss control representative. Loss control is the eyes and ears of the subscriber. On very rare occasions, an insurer visits an insured during the quoting process or after he has become a client. They are based on the findings of the loss control department. If you want to impress the underwriter, you have to impress loss control first!

You should do everything you can to make sure the loss control visit goes smoothly. The loss control representative’s job is to do a physical inspection and report back to the insurer with their findings. Do you have poor housekeeping? Are adequate safeguards in place? What is your attitude towards safety and loss minimization? Are you receptive to their suggestions? Are you conflicted? Believe me, all these things reach the subscriber and are reflected in the price.

One of the worst things an insured person can do is quote their insurance every year. I know the temptation is to save money. If your broker is doing his job and not taking it for granted, he will work with the existing company on a competitive insurance program. If you quote your insurance every year, you are doing yourself a disservice. Insurance companies like to list businesses that they think have a legitimate chance to write. Let’s say that in 2004 you quote your insurance with some companies. In 2005 you do the same again. In 2006 he decides to go out to tender again. Trust me; Traders who traded and didn’t get their account in the previous two years will most likely not trade in that third year. They’ll do one of two things: either they won’t quote, or they’ll just throw out a number without devoting any time or energy to your account.

I think everyone can relate to the way an underwriter thinks when it comes to a company that goes public every year. I’m sure most of you have your own “suspects” who always want a price, with no intention of giving you the business. They simply want to keep their current “honest” supplier. Do you spend a lot of time and effort on these accounts? The answer is probably no, so why should an insurance company be any different? By listing your insurance every year, you get a bad reputation and no reputable broker will be willing to work with you. I know it’s tempting, but don’t do it! Of course, if your relationship with your current broker has soured, then you should look elsewhere. Insurance companies view the relationship as a partnership and like companies that are willing to work with them. I’m not saying don’t look at your insurance, just don’t do it every year.

My last point is subscriber time. Subscribers need time to actually sign up for an account. Ideally, they like a delivery time of 2-3 months. The reason is that if you wait until the last minute and your insurance comes up during a busy time of year, they may not have the resources available to give you a competitive quote.

Most subscribers are good at what they do and should be respected. Policyholders typically don’t know what makes an underwriter tick, and hopefully this article has enlightened you on how they operate behind that “curtain.”