Bidding Your Insurance: Finding the Right Partners
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Bidding Your Insurance: Finding the Right Partners

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Bidding Your Insurance: Finding the Right Partners Bidding Your Insurance: Finding the Right Partners Presentation Transcript

  • Bidding Your Insurance Finding the Right Partners Connecticut Conference of Independent Colleges Quinnipiac University Law School Thursday July 14, 2005 Beth Carmichael, Five Colleges John Lochner, Towers Perrin
    • “ Because the insurance broker is so critical to the development and implementation of the risk-financing plan, selecting a broker should be undertaken in a highly structured manner.”
    • Managing Medical Professional Liability Risk: An Insurance Primer
      • Published by University Health System Consortium
  • Insurance Broker Selection
    • Definitions
      • Broker
      • Agent
      • Direct writer
      • “Going direct”
  • Insurance Broker Selection
    • Services performed
      • Insurance placement
      • Policy review
      • Claims handling
      • Loss control consulting
      • Actuarial services
      • Business continuity planning
      • Captive feasibility and management
      • Risk management department staffing
  • Insurance Broker Selection
    • Players
      • Major brokers
        • Marsh, Aon, Gallagher, Willis
      • Regional Brokers or Agents
      • Local Agents
      • Niche Brokers
      • Consultants
  • Insurance Broker Selection
    • Selection
      • Needs assessment, service requirements
      • Relationship with broker/underwriter (middleman or partner)
      • Bid insurance versus bid brokerage services
      • Constraints: institutional or legal
      • Politics
      • Decision method: executive versus committee approach
      • Broker Agreement
  • Insurance Broker Selection
    • Selection – Compensation
      • Fee
      • Commission
      • Incentive based
  • Insurance Broker Selection
    • Bidding Insurance
      • Determining who can bid
      • RFP for insurance only or also insurance broker/agent services
      • Unstructured bidding
      • Bidders assigned insurance markets
  • Insurance Broker Selection
    • Bidding Services
      • RFQ: written response
      • RFP to top responders to RFQ: written or oral presentation
      • Contract
      • Broker of record letters
      • Insurance required of broker
  • Insurance Broker Selection
    • Pitfalls
      • Commission driven premium pricing
      • Selecting firm/selecting individuals
      • One broker or more?
      • Ethics
        • Lunch, dinner, baseball
        • Underwriting trips
  • Insurance Broker Selection
    • Monitoring the relationship
      • Quality of service
        • Evaluation against stated service requirements
        • Qualitative evaluation
        • Broker self-evaluation: stewardship reports
      • Compensation – commission + contingent (MSA) commission + service fee + incentives??
        • Broker reporting
        • Insurer reporting
  • Insurance Broker Selection
    • Questions?
    • Thank you for your time