Understanding who's involved in your commercial renewal insurance process and how each party uses your data will help you gather and consolidate the correct data from the beginning. In addition to the Risk/Insurance Managers, there are three other key roles that each have an important part in the commercial insurance renewal process.
The Broker
Their role is to use their in-depth knowledge of the insurance market, along with the detailed data Risk Managers have collected to offer advice before, during and after the renewal process. The Broker negotiates complex cases with insurers and underwriters on your behalf, finding you the best possible insurance coverage, at the best possible price. They should always act in your best interest and should always provide quotes from a selection of insurers allowing you to make an informed choice.
The Actuary
The detailed insight gained from your highly detailed data enables actuaries to accurately evaluate complex analysis of risk and assess the probability, and potential financial consequences, of those risks. In some cases of commercial insurance renewal, an actuary must consider the probability of terrorist attacks, natural disasters and industrial diseases, such as chemical poisoning, before assigning a premium that is accurate. Providing highly accurate data plays a crucial part in allowing actuaries to set an accurate premium and where any data is missing, actuaries will apply the worst-case scenarios – which lead to higher priced premiums.
The Underwriter
Underwriters accept or reject risks on behalf of the insurance company. They use the data submitted via your brokers to spot trends and correlations, which in turn helps them determine what coverage is available, the premium to be paid and other terms required should their company agree to accept the risk. They can also use your data to develop future and more accurate pricing models.
There are many aspects of commercial insurance where data is needed on buildings - motor insurance, employers’ liability and public liability to name a few. This complex process is made easier through collecting detailed data in the initial renewal process before submitting it to your broker. Details on how your commercial property is constructed – materials used, building age, building geometry – can all add to making a significant reduction to your premium.
To read an example of how providing detailed data made a real difference to reducing commercial insurance premiums, download The Definitive Guide to Commercial Insurance Renewal.
Angus Rhodes is one of Ventiv Technology's senior risk management information system consultants. Contact Angus at angus.rhodes@ventivtech.com.
