Our first concern is hoping everyone involved is all right. Then, as insurance professionals, our focus turns to the indemnification of the involved parties. Did we provide our client with the proper coverages? Did we provide our client with high enough limits? Equally as important, did we place our client with the right carrier?
With Commercial Auto rates forecasted to rise between 6% to 12% in 2019 [1], it is easy to focus on the premium when presenting a quote proposal to your client. While those of us in the insurance industry are anticipating higher rates on most of our Business Auto renewals, your client, who has experienced favorable loss history over the past five years, does not feel they should be hit with any type of increase. More than likely, that client will give you a look of haughty derision, as you explain their premium rate increase, as the result of unfavorable market frequency and severity, resulting from escalating repair cost, fraud, medical claims and other market conditions. There is not much more justification you can provide to that client, aside from the statistical facts.
As the Risk Advisor, you will need to make sure that the client has taken into consideration the proper precautions to lessen the inevitable rate increase, as their actions also have an impact on the pricing of subsequent policy terms. Assistance with loss prevention is where the carrier you are quoting with may be able to add value to your presentation.
While all Commercial Auto carriers offer claims services once the policy is in force, some carriers will offer the assistance your individual client may need before an accident happens, along with the services they provide afterwards.
These proactive carriers may include one or more of the following services to add value to their policy:
- Trained Loss Control Personnel to assist in setting up a Fleet Safety Program
- Improving the current Fleet Safety Program already in place
- Assistance with setting up Fleet Telematics Systems by offering referral discounts
- Online Resources for safety classes and training documents
Other Claims Services may include:
- Designated Claim Liaison and Adjuster
- 24/7 claim services
The auto portion of your presentation can make or break the deal. What kind of value can you bring with that quote to justify the pricing? Halcyon Underwriter’s has markets to help bring that value to your presentation.
[1] 1. Gonzalez, Gloria (2018, Nov 7) Commercial insurance rates generally forecast to rise in 2019; Business Insurance; retrieved from www.businessinsurance.com.
This content is strictly informational and should not be used as specific advice on insurance products, legal, accounting, and/or tax related matters. Insureds should always contact the appropriate licensed professional for their insurance, legal, accounting, or tax needs.
