JOE: The E&O space is filled with complexity, and can be a challenging area for brokers to navigate. To find out how brokers can up their game in the E&O space, IBTV visited the Trisura office in downtown Toronto to get some insider knowledge from their specialty lines team.
Caitlin: So we’re definitely seeing a variety amongst the various Miscellaneous E&O wordings out there, and different markets have different approaches to their wordings, so it’s very important for brokers to emphasize to their clients that not all wordings are created equally. To do this, they really have to dive in to the wordings, and look at the different definitions, exclusions, conditions that the different markets have in their wording. A lot of clients right now are really focused by price, or driven by price, so brokers really need to point out the differences and show the clients exactly what coverage they are getting with the different policies.
For brokers to fully understand their client’s exposures, it’s very important for the market selection for their risk. Different markets have different risk appetites and with that some markets will exclude certain services, where some are open to including them. So really knowing the full breadth of services that your client is performing is really important for choosing the right market that will cover all those services.
JOE: Taking the time to understand a client’s business model and functions is crucial because in the modern market, any broker who doesn’t understand the full extent of their clients exposures is likely to struggle.
Kathy: If you have a hard-to-place risk, by not understanding the true exposure, you’re not able to rely that information to the underwriter, which in turn could determine whether the coverage is put in place or declined. By having a better understanding of your clients business, you’re able to understand exactly what type of coverage they are looking for and what they need, and ensure there are no gaps in coverage. A broker can go about getting that knowledge by keeping up to date with current market trends and risk analysis. They’re constantly changing, so It’s best to just keep up with what’s going on in the market. They can utilize their insurers by going on their website, they often offer online training, that’s always helpful and with certain niche markets, you can utilize their specialty underwriter. That’s extremely beneficial; they can walk through the product with them and ensure they understand the full coverage.
JOE: In an increasingly competitive market, it’s essential that brokers mark themselves out from the crowd. In order to differentiate themselves, Elliot Ford believes that brokers should be focusing their attention on some specific market niches.
Elliot: I think that brokers should certainly pay close attention the technology sector where there’s certainly all kinds of room for growth. As services and information are digitized in the modern world, brokers need to ensure that these businesses are properly insured, especially as the products and services evolve. Finding somebody who you enjoy working with, leaning on an underwriter who’s an expert in their field and understanding their processes on how they underwrite a risk, will help them communicate with the insured as to what coverage is necessary to properly cover their exposures.