59baa7404258446be86bc0b033040070.ppt
- Количество слайдов: 23
The Role of the Broker as the advocate of the Insurance Buyer JANUARY 26, 2012 Andrew F. Steptowe Managing Director Houston, TX
Marsh & Mc. Lennan Companies Inc. MMC is a global professional services firm that helps clients identify, plan for and respond to critical business issues and risks by providing analysis, advice and transactional services. MMC’s subsidiaries: • Marsh • Guy Carpenter • Mercer • Oliver Wyman MARSH 3/19/2018 1
Marsh Global Energy - Locations Oslo Calgary San Francisco London New York Madrid Houston Dubai Energy Teams in: • Tulsa • Dallas • New Orleans Singapore Sao Paulo Perth • • 300+ employees helping c. 1, 750 clients globally Placing approx. USD 1. 8 Billion in insurance premiums into energy insurance markets, significantly more than any other broker. • • MARSH 3/19/2018 Integrated Global Practice, headquartered in Houston, Texas Energy practitioners in many more locations around the world 2
Large Commercial Insurance Involves 3 Key Parties…. • The Client • The Broker • The Insurer MARSH 3/19/2018 3
In a world with no brokers…. . MARSH 3/19/2018 4
So why the “Middle Man”? • The Broker is an impartial advisor – not an Agent • The Broker is able to best assimilate the risks faced by the Client to the products available from various Insurers • The Broker is the advocate of the Insured not the Insurer • The Broker also fulfills key administrative functions related to regulation and taxation MARSH 3/19/2018 5
What other important roles do brokers play? • Development of new products • Market analysis • Distribution network for underwriters MARSH 3/19/2018 6
The competitive landscape in Houston • GLOBAL BROKERS • DOMESTIC BROKERS – Marsh – Aon – Willis MARSH – – – 3/19/2018 Alliant Gallagher Lockton Mc. Griff Seibels John L. Wortham USI 7
Being appointed by a Client…. “There are worse things in life than death. Have you ever spent an evening with an Insurance salesman? ” Woody Allen MARSH 3/19/2018
How Brokers are chosen • Usually multiple brokers are identified • Certain key criteria will define the most likely candidates • They are then asked to present a conceptual proposal based on a set of service and/or program requirements particular to the needs of the individual client • Sometimes selection is made on an “assigned markets” basis MARSH 3/19/2018 9
The decision whom to appoint is usually both subjective and objective…. . MARSH 3/19/2018 10
Having been appointed there is a great deal to be done before approaching Insurers: • Gaining an in depth knowledge of the Clients business and operations • Benchmarking limits and retentions with similar clients • Reviewing insurance policies currently • Assessing proposed premium levels in place to ensure the coverage against present market trends provided is adequate • Identification of key Insurers • Gaining an understanding of prior • Developing a marketing plan year losses and past experience MARSH 3/19/2018 11
The Marsh 3 D Model MARSH 3/19/2018 12
Benchmarking • Brokers have access to a significant amount of key data from the clients that they work with • Clients are always interested in the limits, retentions and premiums paid by their competitors • Brokers are always interested in what deals have been done by whom for how much • The end game is to leverage the information we have to get the right deal at the right price for the client. Very rarely is there only one option! MARSH 3/19/2018 13
Example Benchmarking Account Exp Total Insured Date PD Deductible BI Deductible Net Rate on Values & Full Indemnity Period Values Policy Limit Company A May-10 $27, 292, 797, 418 $5, 000 30 Days 0. 0307 $750, 000 Company B Jul-10 $1, 649, 869, 000 $1, 000 30 Days 0. 0737 $400, 000 Oct-10 $332, 732, 460 $1, 000 30 Days 0. 0553 $50, 000 Oct-10 $1, 891, 739, 309 $10, 000 21 Days 0. 0375 $100, 000 Oct-10 $1, 593, 073, 036 $5, 000 - 0. 0303 $60, 000 Jun-10 $1, 147, 873, 615 $750, 000 15 Days/ 45 Days 0. 0631 $50, 000 May-10 $10, 424, 635, 829 $1, 000 30 Days 0. 0884 $405, 000 May-10 $2, 223, 964, 977 $1, 000 45 Days 0. 0788 $300, 000 Sep-10 $34, 530, 620, 982 $2, 000 30 Days 0. 0270 $750, 000 Sep-10 $4, 033, 338, 340 $2, 000 45 Days 0. 0669 Not Known May-10 $1, 030, 685, 100 $1, 000 30 Days 0. 2373 $230, 000 MARSH 3/19/2018 14
How do brokers evaluate which Underwriters to approach for a particular risk? • Financial Stability • A proven track record in a particular class of business: – Underwriting expertise – Risk Management capabilities – Claims capabilities • An understanding of the industry in which the client operates • Service • Licensing MARSH 3/19/2018 15
Major Markets for Energy Business • Domestic – ACE – Chartis – Chubb – Liberty – Starr – St Paul / Travelers – WR Berkley – Zurich MARSH • Overseas – Lloyd’s – Munich Re – Swiss Re – GARD – AXA – Bermuda (XL, Torus, OCIL) – OIL 3/19/2018 16
The basic marketing plan • Identify two or three “lead markets” • Prepare a detailed underwriting submission • Arrange face to face meetings between the Insured and Underwriters • Negotiate! • Obtain terms and discuss options with the Client • Refine terms as necessary • Select a market and bind the risk MARSH 3/19/2018 17
Setting Expectations An Example of a marketing timeline 22 nd Strategy meeting with Rowan& Marsh teams Client & Marsh teams to discuss goals & any issues 22 nd - 31 st Rowanto provide Client to provide renewal information Risk Information & Marsh to develop submission 1 ST Marsh to send submission to Market March Ongoing marketing & information exchange 4 TH – 8 th Underwriter visits & presentations, as required 10 th – 12 th Marsh to present renewal proposal to Rowan to Client February Ongoing marketing & information exchange April – May Policies received, reviewed & sent to Rowan to Client 13 th – 20 th Rowanto provide Client to provide Binding instructions Monitor program & provide superb day-to -day service APRIL 1 st EFFECTIVE DATE JANUARY MARSH FEBRUARY MARCH 3/19/2018 APRIL ONGOING 18
After the deal is done…. • Issue all payment documentation • Collect funds and pay insurers • Issue documentation: Certificates, Auto ID cards, Policies etc. • Prepare a summary of coverage • Issue a claims procedure manual • Maintain appropriate contact MARSH 3/19/2018 19
And most importantly…. NO SURPRISES! MARSH 3/19/2018 20
Thank you for your attention I’m sure you must have some questions! …. . MARSH 3/19/2018 21
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59baa7404258446be86bc0b033040070.ppt