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Marketing in the hard market When it comes to marketing in the hard E&S market, it's all about playing the game correctly. Coverage and price quotations How far in advance do you really need to send in the coverage and price quotation? Well, depending on the size of the risk and complexity of the policy, a quote for a small risk could be a little as 60 to 90 days. For larger policies/accounts, see about doing it in 120 days if possible or the same as with a standard carrier. As for turnaround on endorsements and policies, you're looking within 90 days for a normal brokerage account, or within 45 days for an MGA account. Audits are the same as for standard carriers. Hard market information During a soft market, a broker typically receives anywhere from 25 to 50 applications a week. But in today's hard market, that figure becomes upwards of 100 per week. What does that mean to you? Is your application the best and is it receiving the attention it deserves? Make sure it does! Qualify, quantify and beautify the account. Wholesaler selection Relationships, relationships, relationships! Cultivate brokers who respond-maybe five brokers with exceptions for specialty programs, products, or markets. And if there is no market through a given broker, does that broker help you find a market or recommend another broker? Market blocking Market blocking involves sending applications to a number of E&S brokers and not defining what markets each broker is to submit to. This can backfire, however, if the surplus lines broker stumbles over their competitor in the marketplace. Note that the brokers generally have the same markets. Many carriers will in fact decline to quote a risk that has been sent to every broker and carrier merely to "block" the market. Pick the markets for each broker depending on their volume with that market. Be in control of your risk! |
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Not only are policy forms, clauses, rules and court decisions constantly changing, but forms vary from company to company and state to state. This material is intended as a general guideline and might not apply to a specific situation. The authors, LunchTimeCE, Inc., CEfreedom, and Insurance Skills Center, and any organization for whom this course is administered will have neither liability nor responsibility to any person or entity with respect to any loss or damage alleged to be caused directly or indirectly as a result of information contained in this course.
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