We know that you cringe when you see those follow up emails coming across your desk regarding additional information needed for a carrier’s file. While we understand the extra work and time involved, we also know that our underwriters would not ask if it were not important.
Insurance carriers use a great deal of information to determine whether or not an insured qualifies as an envrionmental class of business – they first do research on the company and its operations and then verify the percentages of business/revenues devoted to each of those operations. Carriers also examine the potential for environmental exposures that can affect the company and assess the risks that may present themselves as a result of these exposures.
All carriers have firm underwriting and reinsurance guidelines in place. The subjectivities requested on quotes/binders adhere to these guidelines. We need to do our best to help our markets stay in compliance with their procedures. Otherwise they may become more restrictive on coverage because of a consistent lack of data.
Of particular importance are the insured’s most recent financial statements and current training/licensing certifications. Carriers require financial statements to substantiate ability to pay deductibles, confirm exposure accuracy, and verify stability of an insured; all very important factors when underwriting an insured’s account accurately. Insurance carriers also need to know that the insured is managing their risk by keeping themselves and their employees with current and proper training and licensure for their respective segment(s) of the environmental industry. When an underwriter reviews accounts for quoting (regardless of the market conditions) the account that stands out has provided the necessary information to help them understand the exposure. This allows our underwriters to better assess the coverage that is needed and, consequently, offer the best pricing possible.
Yes, collecting this information does take some extra effort from all of us, including insureds. However, at the end of the day, the carriers appreciate our support and we can continue to receive quality coverage, competitive pricing, and efficient service from our underwriters …which makes all of us look good to the insured!