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Underwriting Non-Renewal Equity vs. New Business

Posted: Tue Sep 17, 2019 12:13 pm
by Oblong
Anyone that has producing P&C for awhile has a surely developed a love-hate (mostly one of those!) with the underwriting department. Thankfully these days thanks to technology most new business is self-underwritten with guidelines baked-in.

But when it comes to underwriters setting up DNR's (Do Not Renew) for customers it seems there is still a lot of subjectivity in making those decisions. Nothing new to anyone is seeing DNR's on long-time policyholders due to claim activity.

But what I have been seeing lately from a carrier is setting up DNR's for policyholders that would qualify as new business customers! I have never seen anything like that in many years of doing business. On the surface it makes absolutely zero sense...why would a carrier send one out the door while the exact same risk would be welcomed aboard as a new customer.

Is this something you have seen with your carriers? Or is this just poor/inexperienced underwriting?

Re: Underwriting Non-Renewal Equity vs. New Business

Posted: Thu Sep 19, 2019 9:16 am
by mccluney
Sorry I do not see a problem here. Talk to the underwriter or marketing rep. to determine what they perceive is the problem with the risk. That will help to clarify and help you to underwrite the risk.