NetComp Insurance, a newly-formed program manager based in Columbia, S.C., has opened its online program (www.netcompinsurance.com) for small to-mid size workers’ compensation business to all independent agents in Arkansas, Georgia, North Carolina, South Carolina and Texas.
NetComp said it will make monoline workers compensation coverage available to low-severity, “Main Street” businesses. The policies, which can be issued online, are being written on the paper of Dallas National Insurance Co. The minimum premium is $500; premiums are typically below $5,000.
Agents may access NetComp’s program through its Internet portal, where they are informed they can quote, bind and also issue a policy in about 15 minutes. There is a Quick-Quote feature that enables agents to obtain a premium estimate with simply the state, class code and preferred limits. If the estimate is acceptable, the agent can then complete an application, bind, make a payment and have the policy issued immediately.
“Our goal is to use advanced technology to reduce the complexity of underwriting, rating and issuing a policy — providing agents with an easy, efficient tool to write more workers’ compensation insurance,” said John F. Seibert, president and CEO of the new firm.
Seibert said that the ability to actually issue the policy should give NetComp an advantage in the marketplace. He said agents will be able to quote and issue policies while speaking on the phone or even while onsite with local small businesses.
The 10 percent commission that NetComp is paying should also help win over business. “We think this is very attractive for independent agents,” Seibert said, citing typical commissions of seven and eight percent.
Seibert is the former CEO of Capital City Insurance Co., a multiline property/ casualty insurer operating in 18 southeastern states. Prior to that, he was a senior vice president with General Reinsurance.
Seibert said he began working on the business plan for NetComp after he left Capital City about 18 months ago, when the insurer was acquired. At Capital City, Seibert said he saw that small town and rural, low premium books of business were profitable from a loss perspective but were expensive to handle. Thus he teamed with Duckcreek Technologies to create NetComp’s online quote, bind and issuance system to streamline the handling and underwriting.
“We’re very comfortable having the black box handle the underwriting,” he said. If the risk doesn’t fit in NetComp’s model, then it’s not right for NetComp.
He also said he has no interest in expanding into other lines but does plan to expand into other states.
Seibert is venturing into business at a time when payrolls and premiums are down but he thinks the economy is on the way back and that the soft market will turn, although he’s not sure exactly when.
“This is an ideal time to start-up,” he says. “It’s better to catch the market turning up than on the way down.”
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