How can you effectively negotiate in both hard and soft markets? Preparation, education, a win-win mindset and communication are key.
Negotiation can be exciting for some and anxiety-causing for others. In our industry, negotiating is a daily – or hourly – occurrence. No matter how comfortable, elements outside your control can instantly impact how you do business. A recession strikes, natural disaster occurs or a robust economy emerges with plentiful access to capital, switching the market from hard to soft and back again. ‘Market proof’ negotiation strategies to weather any storm.
The canons of a quality submission, while varied by the line of business or coverage, generally follow the same principles. There is a direct connection between complete, accurate information and success in placing business.
This includes a description of all operations, loss history, expiring terms, peripheral exposures, and any subcontractor or additional insured requirements. Precise ongoing communication and information will reduce friction, limit inquiries, back-and-forth exchanges and pending data. Precise detailed information generates fewer questions and will garner a faster response.
Status and Details
Why is the account being marketed? Who controls the account? Have renewal terms and pricing been offered? Are coverage needs being achieved? Competition and target pricing? Current and prior carrier information is essential. Usually, complete and accurate information will produce a faster underwriting decision.
Time is of the Essence
Provide accurate time constraints. While submitting required information makes a big difference, it won’t always eliminate questions. This is E&S business, we expect and anticipate tough decisions. Outline challenges or issues and work closely with our underwriters to find a tailored solution. Ensure you and your customer get exactly what you need.
Share More Data
Include loss runs, a supplemental application (any carrier) to get the submission routed quickly. A few extra moments to ensure precise required information will increase our speed. Outline issues or a point of contention creating a challenge towards placement. These issues could be outlier incidental operations or ambiguous exposures that need to be classified or interpreted accurately.
In a fast changing business, knowledge, communication and speed wins. Guidelines change, rates adjust and appetites emerge. Enhance your relationships and secure your client by always providing us a last-look opportunity to place your business.
E&0 Prevention PRIOR TO BINDING
Best practices that agencies can apply prior to binding coverage.