Wholesale brokers continually prove themselves as valuable allies to the retail broker community when it comes to handling difficult-to-place risks. With the current pandemic touching and potentially reshaping wide swaths of the insurance industry – up to and including possible changes to current, future and retroactive policies that protect landlords against commercial real property lessee’s property losses – a wholesale broker provides quantifiable value. We looked at expertise in last week’s blog as a mission critical part component of the wholesale broker value proposition.This week, we examine speed, efficiency and accuracy as an integral part of the equation.
Experience shows wholesalers are able to more quickly go to market due to their flexibility and open structure. These brokers often have better access to certain insurance markets and that access may prove very beneficial when dealing with difficult-to-place risks. Evaluation and analysis by Conning, Inc. in its annual Insurance Reports determined that use of the wholesale distribution channel and use of the wholesale broker as an intermediary does not increase the cost of the transaction to the insured, a concern raised by some retail brokerages.
Efficiencies in Underwriting and Claims
Wholesale brokers can help provide retailers with access to specialty lines insurance products and add value by providing technical expertise on difficult or complex risks. As a wholesaler, Novita Insurance Solutions not only has the expertise, but the efficiencies of resources and responsiveness – from fast, accurate, and decisive underwriting to proactive, experienced and claims handling. The organization works as a ‘smart’ firm, pushing to focus on adding value to the retail/broker transaction and finding ways to make its retail client partners better, thereby ultimately delivering a better product and experience to their insured. The wholesale broker must work closely with insurance markets, particularly as markets continue to respond to and evolve in the face of rapid, dynamic change. The ongoing COVID-19 impact on current and future policy language, pricing, and availability is no exception.
“Business goes to the E&S market because it needs some kind of special attention,” said Pat Lowther, Owner/Principal, Novita Insurance Solutions. “It’s non-admitted business so there are manuscripted endorsements; someone has to look at it, apply professional expertise, and handcraft those endorsements. It has to be fast, accurate, and scalable. Our value is in providing retail clients confidence in our ability to have that granular market knowledge and expertise in ‘real time,’ to understand both the creative and complex nature of risk, to deliver expeditiously in the case of any future claim, all at competitive prices. At Novita we know our retail brokers, we have a relationship with them, and we provide them with the ability to offer frictionless, seamless experiences for their clients,” concluded Lowther.
Let us help you and your clients navigate the changing landscape of Commercial LRO.