What do brokers and carriers expect from each other?
Published: December 4, 2019
CATEGORY: Industry News
One of the most common questions in the insurance industry is what do brokers expect from insurers and what do carriers expect from brokerages? At the first-ever Insurance Bureau of Canada (IBC) Commercial Insurance Symposium this week, that question received a simple answer.
It seems, both carriers and brokers want each other to “take on a little bit more,” especially as the industry manages a hard market situation.
For insurance companies, they want brokers to provide more assistance across servicing, claims, and underwriting. “They want brokers to take on a little bit more work and, a result of that, reduce some of the servicing costs for the carriers,” said Greg Bubela, manager of strategy and operations consulting with Deloitte Canada.
As for brokers, they would like insurance companies to spread across most markets and write more risk.
“That’s a big pain point between brokers and carriers. Brokers don’t really know what the carrier wants to write this quarter, and [brokers] will do a bunch of submissions and the carrier declines all of them,” Bubela said during a panel discussion titled State of the Industry: What’s Driving the Commercial Insurance Market? with two other Deloitte speakers. “They don’t know why, [the carrier] didn’t tell them. It creates a lot of confusion, undue effort and talent on the broker side when having to go to the carriers.”
Carriers can help appease brokers by simply making communication more direct about what they are willing to write, added Bubela.
As for insurance companies, they want brokers to be more transparent in terms of what customers tell them.
“If you read between the lines, [it’s] potentially owning more of the customer relationship. They really want to get involved and know who they are servicing,” Bubela said.