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Working on your “Insurance Dating Profile”

Around two years ago, some friends and I were catching up and one person in the group, we’ll call him Jerry, brought up his dating life. He was trying out a new dating app and going on a bunch of dates but finding no connection or success. We all knew Jerry for 10+ years, the only logical follow-up was, “Let’s see your profile”.

As we scrolled through Jerry’s bio and pictures, it became clear that it was not the most accurate representation of him. The common online dating term, “catfishing”, was inaccurate because it wasn’t a different person, just not Jerry being his genuine authentic self. For example, Jerry hates the beach. Yet, on his profile, there were beach pictures, and under things he liked to do, he listed, “go to the beach”.

After a few laughs, we asked how the dates played out. Jerry told us that despite the high volume of dates he went on, he didn’t feel any connection and couldn’t relate to the women he was seeing. We looked at one another with a “no kidding”, expression on our faces and helped him tweak his profile to be more authentic and help him put his best foot forward.

Believe it or not, this does relate to insurance somehow. Jerry is a great guy with a lot to offer, but he wasn’t displaying himself in the best way. This same problem occurs in the insurance world. If a company isn’t transparent with all areas of their business, it doesn’t set them up well for success in the insurance marketplace. There are insurance companies for every type of business out there but, if you’re often presented with few quote options or regularly receive declinations, you may need to improve your company’s insurance dating profile.

Making your business an attractive risk to insurance companies is feasible but it does require some work. This is especially important in 2023 because of the current hard insurance market. Insurance companies aren’t writing accounts they have questions on, and aggressive pricing is harder and harder to come by. Now is the time to implement a few key strategies to put your business in the best position to combat the hard marketplace.

The best first step to accomplishing this goal is formulating a trusting and strong relationship with your agent. Your agent is the professional who determines which insurance markets best fit your business needs and will offer the most comprehensive insurance program. If your agent does not know all the facts and subtleties of your company, they can’t make this decision accurately and ensure you have the proper coverage. Think of your agent like trusted counsel. Their goal is to advise and help so as not to harm or hinder your business. The only way your agent can set you up for success is with transparency. Allow your agent the full story of your business, and they can use that to your advantage when negotiating access to markets, coverage, and at times, price. Trust is earned in business, and if your agent hasn’t earned it, it’s worth analyzing if the problem is the agent or you.

Outside of your agent relationship, the next best way to establish an insurance profile attractive to insurance companies is through loss control. If you’re asking yourself, “What is loss control”, a few things to consider are: How do you train new employees? What does your hiring process look like? Is there a weekly safety talk or an actual culture of safety among your employees? Are claims reviewed to see what could have been done to prevent them and was action taken to make sure a similar loss doesn’t happen again? Loss control is a significant factor that is reflected in your Workers’ Compensation Experience Modification. It also tells insurance companies that you are doing your due diligence to prevent incidents that could cause a claim, which, companies find very attractive.

Another question to ask yourself is if the insurance world sees you as a quality risk. Think of this like your insurance credit score. If you’re experiencing difficult financial times, let your agent know and explain what’s brought you here. Do you make premium payments on time? Have you lapsed for non-pay and operated without insurance coverage? Are you compliant with audits or implementing the requirements carriers demand? These are all reviewed and discovered during the underwriting process; getting out ahead of them makes insurance company underwriters more comfortable with your business.

Lastly, you may be a company that takes all the above steps and still has few options. Insurance companies look at everything through risk, and there are higher-risk and lower-risk business operations. Just about any insurance company will write a salon or an optometrist office. But what if you’re a demolition company, roofer, or tree service? Your pool of carriers dwindles significantly and makes the items discussed in this article even more important.

My wife and I are heavy in the wedding season of our lives; I’ve done the cha-cha slide so much I could do it in my sleep. Many of these couples met on dating apps, and we know the successful couples can attest that their dating profiles put forth their honest and authentic self. Ultimately, this is what helped them find the right person. Your business can also find success in the insurance world resulting in a happy relationship between your business, your agent, and your insurance company.

P.S. Sadly, none of these weddings have been for Jerry. If you’re interested in getting to know Jerry, please reach out to me.

 


About the Author 

Matt DelBorrello
Commercial Insurance Consultant
HMK Insurance, an Alera Group Company

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