The Shift Toward Specialisms Benefits Broker and Client Alike
Businesses aren’t one-size-fits-all. Their needs and risks often differ from business to business and segment to segment, so their insurance should follow suit. When an insurer can accommodate the nuances of a business through specialisms, the broker can best support their client – and the client is better protected against the special business risks it faces.
That’s why Travelers Europe has formed partnerships with scheme specialists and specialist Managing General Agents (MGAs) such as Q Underwriting to provide insurance schemes to specialist sectors. Q Underwriting provides specialist insurance schemes for more than 30 niche commercial lines insurance products. Their specialisms include segments as diverse as charity, social enterprise and faith-based groups, motor traders, high risk construction trades and recruitment and employment agencies. Their specialist underwriters interact with brokers and clients in these sectors every day of the week, so they have a deep understanding of the segments they cover, the nuances of their exposures, and the insurance protection required to protect their specific interests.
“Clients face high demands nowadays and their risks are changing,” said Jonathan Forster, SME distribution director for Travelers Europe. “Through specialism, we can best respond to the evolving needs of brokers. We’re already seeing micro-specialism, with increasing focus on not just segments but on subsegments and on nuances that exist within those industries.” Serving specialist businesses well calls for insurers and their partner brokers and MGAs to be flexible in meeting client needs, to have the infrastructure required to get products to market quickly, and to be committed to working together for the long term.
Merging strengths to meet client needs
As partners, Q Underwriting and Travelers have complementary strengths. Q Underwriting extends the depth of product and sector knowledge and distribution that Travelers can offer end customers and fosters the relationships that can ensure stronger underwriting results. In turn, Travelers provides a suite of business insurance products to help round out the proposition, as well as a longstanding track record of financial strength, so customers can trust in their ability to pay claims. The partners combine their respective capabilities to ensure the broker and client get solutions that are built to support them.
As a result, brokers can address the larger picture of a client’s risk, as well as see the finer details of how a risk can impact a segment. In the recruitment segment, for example, all it takes to increase an agency’s risk of professional indemnity exposure is sending a client’s CV to their employer when they are confidentially seeking a role. Understanding a segment’s areas of vulnerability goes far in helping to protect its interests.
“This is one of the biggest added values of insurance specialists,” said Forster. “They really understand the exposures in an industry, why they’re different from those in other sectors, and why policy wordings should be different as a result.”
As businesses navigate new and emerging challenges, and with increasing regulation and governance, specialist cover is likely to become an even greater requirement in the future. Brokers can find the solutions they need through insurers and MGA partners who can maximise each other’s capabilities to deliver for clients.
“It’s really important as an MGA to work with carriers who recognise that different products perform differently across segments,” said Mike Hudson, managing director at Q Underwriting. “Travelers sits down with us and listens to our experiences with various specialisms and understands our approach to product design and performance management. They trust the judgment of our underwriters, have constructive discussions with us about wordings, are willing to move quickly to support our clients, and have the same goals for the business. These qualities form the basis of a really strong partnership.”
Increasingly, insurers and MGA partners are looking to forge relationships that can stand the test of time so brokers can count on them to be there for clients.
“I think brokers are finding it harder – and rightly so – to support MGAs where the capacity swaps out every year or two,” Hudson said. “Things change for the customer every year and they need support they can trust. If their MGA’s insurer partnership is fleeting, then the MGA doesn’t have a platform to grow, the insurer doesn’t get the benefit of time to develop into the market, and most importantly, the client doesn’t get the continuity and security they require.”
Beyond a long-term commitment, strengthening these client relationships requires a human touch – even at a time when technology has digitised business processes for so many organisations.
“That’s the beauty of specialism,” Forster said. “We can see how the off-the-shelf policy doesn’t fit, so through our MGA partnerships we get to know each business well and offer new products tailored to them – products they can trust to protect them when they need it most.”
To find out more about Travelers Schemes, visit travelers.co.uk/schemes.
This document is provided for general informational purposes only. It does not, and it is not intended to, provide legal, technical, or other professional advice, nor does it amend, or otherwise affect, the provisions or coverages of any insurance policy issued by Travelers. Travelers does not warrant that adherence to, or compliance with, any recommendations, best practices, checklists, or guidelines will result in a particular outcome. Furthermore, laws, regulations, standards, guidance and codes may change from time to time, and you should always refer to the most current requirements and take specific advice when dealing with specific situations. In no event will Travelers be liable in tort, contract or otherwise to anyone who has access to or uses this information.
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