We remain in a challenging market due largely to medical costs inflation, social inflation and other various economic factors. These conditions have heavily impacted the workers’ compensation industry on several levels, from the rising cost of medical care and supplies to the amount of resources organizations are able to put towards their risk control programs. Yet, there can be available insurance cost-saving opportunities for organizations using a systematic approach to their renewal submission this season, especially when it is framed to highlight their company’s strengths.
“A well thought out, forthcoming submission is the best approach to avoid conservative pricing on a quote,” said Don Bedford, Vice President – Stand Alone Excess Workers’ Compensation Underwriting at Safety National. “Your underwriter needs a complete picture of your exposures. When anything is left out, they typically have no choice but to assume they are not receiving a comprehensive picture of your organization’s risks, increasing your premium in the process.”
Underwriters need as much detail during renewals to provide appropriate terms. These tips can help ensure they have ample information to evaluate your submission:
1. Be truthful.
Show your loss history and exposures as completely as possible, especially the significant large losses and COVID-19 losses. Even including aircraft and vehicle exposures is important in the process. If an underwriter finds you have not been forthcoming, they could assume you have not disclosed other information.
2. Explain large losses in detail.
Your carrier needs to understand what happened to cause the injury and any detail that might clarify the cost. A meeting with your current or prospective insurance carrier to discuss these in person can go a long way in building trust.
3. Show follow through.
Large losses are only part of the equation. What you did after incurring those losses is even more critical. Explain how you responded to a large accident and what you have done from a loss prevention standpoint to prevent or mitigate this type of loss in the future.
4. Get your submission in early.
An early submission means an underwriter can be more creative in accommodating different options. Strategize with your underwriter so you know what makes the most sense for your organization. A higher SIR or deductible at a reduced premium are considerations they may be able to offer.
5. Tell the underwriter about your organization.
Have you opened new facilities? Have there been acquisitions? What does your growth plan look like over the next five years? Explain your culture and tell your story so your underwriter has a complete picture. All of these factors play into determining a premium.