There is a lot of truth to this article. Regionals are more likely to be generalists and do common sense underwriting instead of the canned online approach of the nationals. The Regionals also have online submissions but you can easily contact the underwriter to ask for credits when needed. They are more flexible than the nationals. We like that a lot.
I would not call it common sense underwriting. I would call it lack of underwriting. I just had a case where a regional carier wrote a school bus contractor – 98 units of 72 passenger buses for $1,800 a unit. The cheapest market I could find was $5,000 a unit. And to boot they had a $5MM Excess on top of that for $5K a layer. Common sense underwriting or lack of underwirting???
I bet the National Standards wouldn’t even quote on it. If the regional has one large loss with school children hurt or killed, they will be off of it at the first opportunity and the underwriter canned for doing it that cheaply.
Mr Agent – the point being – the regional carrier who is on the risk shoud not be on the risk as they do not understand the exposure so you just made my point for me. Leave this kind of risk to specialty carriers……
And I have never given a marketing rep more than a 3 footer. They have a way of stretching things about their company and what they are doing. I have had them tell me they wrote stand alone Auto and then when we did a submission, the underwriter said they didn’t. Marketing people paint a pretty picture about the programs and availability and often don’t know about underwriting changes. Most of these guys are glad handers and few try to help you get something written.
The best reason for loyalty to Regionals is: The ablity to write business along with the appreciation for placing it there! My marketing reps look for ways to help me grow and appreciate our efforts when we do!
Okay wait – there is more truth to this one than meets the eye. Especially the UNDERWRITING section!
You’re right about that. Send us your bankrupt rich customers with bad dogs!
There is a lot of truth to this article. Regionals are more likely to be generalists and do common sense underwriting instead of the canned online approach of the nationals. The Regionals also have online submissions but you can easily contact the underwriter to ask for credits when needed. They are more flexible than the nationals. We like that a lot.
I would not call it common sense underwriting. I would call it lack of underwriting. I just had a case where a regional carier wrote a school bus contractor – 98 units of 72 passenger buses for $1,800 a unit. The cheapest market I could find was $5,000 a unit. And to boot they had a $5MM Excess on top of that for $5K a layer. Common sense underwriting or lack of underwirting???
Which regional carriers are practicing cash flow underwriting (or in other words…lack of underwriting)?
I bet the National Standards wouldn’t even quote on it. If the regional has one large loss with school children hurt or killed, they will be off of it at the first opportunity and the underwriter canned for doing it that cheaply.
Mr Agent – the point being – the regional carrier who is on the risk shoud not be on the risk as they do not understand the exposure so you just made my point for me. Leave this kind of risk to specialty carriers……
Hey, I’ve never given any agency owner more than a 10 foot gimme (or 5 if you’re just an agent). We marketing reps have to uphold some standards.
And I have never given a marketing rep more than a 3 footer. They have a way of stretching things about their company and what they are doing. I have had them tell me they wrote stand alone Auto and then when we did a submission, the underwriter said they didn’t. Marketing people paint a pretty picture about the programs and availability and often don’t know about underwriting changes. Most of these guys are glad handers and few try to help you get something written.
You gave a marketing rep a 3 footer? Must not have had any money riding on that putt.
I felt sorry for him since I had him beaten anyway. We have to stay on the good side of marketing reps if we can.
The best reason for loyalty to Regionals is: The ablity to write business along with the appreciation for placing it there! My marketing reps look for ways to help me grow and appreciate our efforts when we do!
Chris Amrhein has always just fractured me. Funny stuff.