July 3, 2022
Technical Assurance, LLC

Insurance Renewal and Broker Selection Process

The distribution system for commercial lines insurance is primarily through independent insurance agents and brokers.  These are business organizations representing multiple insurance companies on a non-exclusive basis.

Direct Writers market their products through exclusive agents who represent only that insurer, relying on their risk control and claims services to distinguish themselves from the independent agents. 

It used to be that the insurance renewal process was simply asking independent agents or brokers to obtain competitive proposals on your behalf from various insurance companies.  As a result of substantial consolidation in the insurance industry, there are now few insurers who write contractors, and those that do, target different types of construction specialties.  Often, the agent/broker who is assigned the "hottest" market is going to win the competition by default, meaning that you may end up with the best price insurer, but not the best representative.

Technical Assurance can assist with market assignments by preparing a summary outlining key differentiators that might have a material effect on the overall program.  This would include the agent/brokers construction focus and level of expertise on the servicing team, their overall responsiveness to the RFP, the services that are devoted to your business, and the agent/brokers reputation and commitment to ethics and professionalism.