Guidance for Marketing Your Insurance Program

Some advocate that you should shop insurance frequently as often as every two years or even annually.  This approach overlooks the value you may receive from a long-term relationship that may protect you from some bumps and twists in the insurance marketplace.  Underwriters and agencies grow wary of accounts that frequently “bid” their insurance and will often refuse to quote the “too frequent” insurance shopper.  Underwriters are more likely to stay with an account if they have enough history to tell the difference between a “bad year” and a “bad risk”.

To make your account more attractive in the insurance market place, avoid shopping your account more that every three years.  However, every four to eight years is an ideal period.  Even then, it might be best to negotiate with your current carrier to improve your programs terms, if you are happy.  That being said, if one or several of the following exist, then certainly a change should be considered without regard to the time frame.

Unhappy with the producer’s performance
Unhappy with the insurer’s performance
Needs have outgrown the producer’s or insurer’s capabilities
Prices out of line with competition
Change in management’s goals or philosophy
Consolidation of multiple coverages into a single account
Special project needs or rating plan availability
Solvency concerns

The Four Possibilities:

• Happy with your agent and your insurance company — don’t shop negotiate with your current agency and company for any improvements.
• Happy with your agent but unhappy with your insurance company — seek proposals and include your current agent or broker.
• Unhappy with your agent but happy with your insurer — change agent of record with your current insurer.
• Unhappy with your agent and your insurer — shop your insurance do not include your current agent and do not include the current insurer in the markets you allocate.