Deborah Allen, Smart Choice®
Over the last several years, the hardening insurance market has yielded a rapidly growing market share of Excess, Surplus and Specialty business. As admitted carriers continue to be more selective about the types of risks they’ll accept, the need for the E&S sector has risen dramatically.
Each state has a unique set of characteristics that offer risks which may not be appropriately covered in the standard/preferred insurance arena. Thus, it is not only quite common, but necessary, to round out your agency portfolio with secure E&S options for your valued policyholder. From coastal property, contractors, and high-risk products liability our E&S partners fill a niche in the agency for products that standard markets prefer to avoid.
Challenges in Excess and Surplus
As most P/C agents know, quoting E&S is very different from standard market business in that you do not get all the “bells and whistles” that may come with a standard market policy; therefore, the agent must be aware of the client’s needs and be prepared to meet those needs by requesting appropriate coverage. An agency can realize a return on their investment if they properly place an E&S risk and manage that risk through its life cycle. The only way to achieve that goal is to understand how to properly quote and place new E&S business, secure the data in your agency management system (most E&S do not download), and report on that opportunity adequately to avoid a coverage lapse. Smart Choice has been very successful in partnering with E&S markets because they offer products with broader appetites and a simple process, which is a key to success for many agencies.
In South Carolina, our success is largely due to our incredible agency partners. We have been able to assist many of them in writing small contractors General Liability, Monoline Liquor Liability and Transportation/Auto, as well as others. We also subscribe to ReferenceConnect and provide risk profiles to help our agents better understand the risk and what coverages are priorities versus optional, based on the class of business. This has proven to be a very successful tool, as it gives agencies the confidence to talk with new customers and prospects. We encourage them to use the experience of our in-house team as well, to bounce off questions and suggestions on the best place to market the account.
Using Express Markets as a Resource for E&S
With the support of Smart Choice’s Express Markets™ program, an agency can take steps to write this type of business knowing they have an experienced team backing them. Agencies can grow and feel secure knowing Smart Choice is committed to helping them succeed when markets change, and in many cases, the E&S customer today is the preferred customer of tomorrow – so providing this crucial service is a retention tool as well.
When beginning to write surplus business, agents should utilize the training and support of their Territory Managers to navigate Express Markets. Proper rollout of E&S markets within an agency is the key to establishing a positive experience between the agent and their customers. And Smart Choice makes this rollout easy with its simple sign-up process and assistance in setting up training tools. In South Carolina, we also provide our partners with concise, simple job aids such as target appetite lists and a focus on the suite of products unique to a territory.
Often, the initial problem for an agency is “Where do I go for this risk?”, and we can assist with the training curve to save the agent time and frustration. The Agency Business Center is also a great resource for searching out market availability in the Express Markets section. We’re also able to connect agents with our E&S underwriters starting the communication on specific accounts and pushing business to our partners. When the agent secures the business, we count this as success for all involved.
As E&S and Specialty lines continues to grow its corner of the insurance market, its imperative we realize that it’s going to be increasingly necessary for us to access these partners for our customers. Smart Choice can be a resource for all agencies in navigating this market sector. Contributing to our partners’ success and increasing the value proposition of agencies is gratifying for me as a State Director and our entire company. The challenges of today become the success stories of tomorrow, and with great partnerships, everything is possible!
The Independent Insurance Agent's Guide to Excess, Surplus and Specialty Markets
Over the last several years, the market has seen a dramatic uptick in Excess, Surplus and Specialty lines. As the standard market continues to adjust, the specialty markets will almost certainly continue to grow at a fast pace. This trend can be a highly opportunistic time for Smart Choice agency partners who have access to our Express Markets search tool in the Agency Business Center. See how this indicates a great opportunity for independent agencies in the 2021 Issue 2 of Smart Choice Magazine.