Author, Sam Brown, Vice President, Human Services, Rancho Mesa Insurance Services, Inc.
Business leaders across the country head into each year with questions regarding the upcoming business insurance renewal process. Owners and officers alike rely on their insurance broker to help them navigate these uncertainties. Why should owners and officers expect a pre-renewal meeting?
Discuss important changes to your business
Between 120 and 90 days prior to the insurance renewal, expect your broker to produce a renewal packet designed to facilitate a face-to-face conversation. This important exchange is the perfect setting to update insurance applications, discuss additional coverages and explore any changes to the business. Without this crucial meeting, changes within your business may not be reflected in the documentation presented to the insurance carrier. And, that can be costly.
“When I met with Rancho Mesa three months prior to our insurance renewal, we game-planned a strategy to address a changing market as well as potential new programs and exposures,” comments Florence Andres, Director of Human Resources for North County Lifeline. “I feel comfortable that our broker strives to understand our business and mission. Every year, important decisions are made and questions are answered.”
Create a target premium and renewal strategy
In addition to application updates, it’s important to discuss a detailed review of losses, the current carrier’s performance and changes in the marketplace that will affect the renewal terms. During this meeting, the two parties agree on a proactive plan to approach the marketplace, target the renewal pricing and agree to a meeting 3 to 4 weeks prior to the renewal date to insure no last minute surprises.
How is this possible? By using industry benchmarking like Rancho Mesa’s StatTrac™ program, we are able to compare our client’s performance to their industry peer group.
“Benchmarking a client’s claims performance over five years provides important insight,” reflects Dave Garcia, Rancho Mesa’s President. “In addition to helping us set aggressive renewal pricing objectives, it also assists us in discovering underlining trends and root causes that help us create the appropriate service plan moving forward to correct those areas of need.”
Prepare for the hardening market
As we enter into a hardening property and casualty insurance market with the potential for escalating premiums, the need for a formal renewal meeting, done well in advance of the policy expiration date, should be expected by all business owners and officers. With the marketplace leading to increasing rates, higher retentions, and lower limit options, leaving an underwriter’s interpretation to chance is not an option. Your broker must paint an accurate picture of your company for the underwriter in a way that justifies the appropriate pricing.
If you have questions about the hardening insurance market or wish to learn more about Rancho Mesa and our “Above and Beyond” approach to customer satisfaction, please call me at (619)937-0175 or sbrown@ranchomesa.com.