RISKY BUSINESS

It is no secret that mergers and acquisitions are happening all around us in the insurance industry (and beyond). These important business decisions have many moving parts and new obstacles to face, both for the buying and selling agencies.

Over the past year, we have worked with many agencies to improve their workflows and procedures and add value to their agency. We do this by gathering data and feedback from agency employees. We value the day-to-day work by service staff, Account Managers, and Producers and it is important to get feedback from each individual role. This means anonymously asking operational questions and then following up on those responses with focused team discussions. We also review customer files and look for consistent naming conventions, attachments, signed applications, and strong documentation practices. The final piece of the puzzle includes reviewing the agency marketing materials and external facing website to ensure alignment of services and eliminate any language that could increase the agency’s standard of care or be used against an agency in a potential E&O situation.

The goal is to find the connection between what the agency wants/thinks is happening and what the actual work product looks like. There are always opportunities to improve and if the investment to identify and update is not a priority, these improvements do not get made. Likewise, we have worked with agencies in the growth stage to create successful work plans for onboarding acquisitions and then auditing the onboarding process. It should come as no surprise that E&O exposures rise during acquisitions and when an agency has inconsistent workflows and procedures. It is critical to first know what the process should look like and then audit against those workflows. This not only creates a strong agency but also provides clarity for employees who may be struggling to change.

There are many options for adding value to your agency, but your team at the IIAW has been working diligently over the last five years to create an audit process that not only helps your agency operate more efficiently, but also decreases the risk of E&O claims and drives positive customer service. In the end, we are confident that the work we do with agencies has played an important role in education and operations. So whether you’re part of the M&A activity or just looking to take your agency to the next level, feel free to call your IIAW team and learn more about how we can partner together.

One more thing…if the operational improvement is not enough of an incentive, there are also guaranteed premium savings for all SwissRe policyholders!