Five Questions Insurance Brokers Can Expect from Their Clients
One of the most important relationships in the insurance business is the one between a risk professional and their insurance broker. Brokers are key partners in understanding risk, advising risk managers on ways to mitigate it, and accessing products and services that enable effective risk management and risk transfer. In order to build a strong relationship between brokers and risk managers, there needs to be an open channel of communication. Here are five questions brokers can expect from their clients.
1. What should my organization expect at our next renewal?
Market conditions change, and so do the price and availability of commercial insurance. Because brokers are in the insurance marketplace every day, they have a bird’s eye view of trends in coverage, pricing, capacity, and more. Brokers should ensure that they communicate these trends to their clients. Risk managers can then use their brokers’ perspectives to plan for market changes and calibrate risk management budgets.
2. How are market conditions affecting your brokerage firm and the insurers on our program?
It’s always helpful for risk managers to know the impact that market conditions have on the businesses of their brokers and insurers. All brokers look at the financial strength of insurers with which they place coverage. Larger brokers typically have in-house analysts dedicated to monitoring market security. Knowing an insurer has an A rating from A.M. Best Company is helpful, but careful brokers dive deeper into the financial data and track trends and changes that could affect their clients. Similarly, a strong balance sheet for a brokerage firm can benefit risk managers, as the broker can invest in new servicing capabilities and geographies, which may work to clients’ advantage.
3. What tools is your firm investing in to help my organization manage risk better?
Insurance brokerage is a business built on relationships – mainly with clients and insurers – but it is increasingly relying on technology and data to manage and enhance those relationships. Risk analytics, for example, is growing by leaps and bounds. Most brokers are now looking at ways to better serve clients and connect with insurers to make the placement process faster and easier. The right tools can also deliver greater insights to both brokers and risk managers. LineSlip offers a powerful platform for commercial insurance brokers to improve their service and value to clients.
4. What changes do you anticipate making to my servicing team in the next year?
Most insurance brokers assign teams to serve clients, with one or more executive-level employees responsible for the client relationship. The personnel serving a given account may change for various reasons – promotions, departures, and new colleagues joining the firm. Risk professionals should be aware of changes that might influence the brokerage’s service. Transparency in servicing is a critical way to build and maintain trust, which is the foundation of every strong relationship.
5. What risks do you see on the horizon for my organization?
Forward-thinking risk advisors look ahead and anticipate changes on behalf of their clients that can help down the road. For example, one multinational organization had ambitious plans for further international expansion, but its insurance program mostly used local or regional companies. Its broker saw an opportunity to build relationships with global insurers that would be important to the client’s business plan in the years ahead. By positioning the client strategically, the broker paved the way for the client to access coverage that fits its growth plans. That’s an example of a broker really looking out for the client.
To discover how LineSlip can help brokers and risk managers, reach out to us today.