The current insurance market landscape includes tighter appetite restrictions from most carriers, stricter underwriting, and often higher renewal premiums—if a renewal is even offered. This has left many retail agents with much more due diligence as they work to place their clients’ policies, especially on property. In fact, a recent Big I study showed that 64% of agencies have refocused their teams to prioritize accounts by complexity, size, and impact to the client.
Why the change in approach? Consider this quote from an agent in the same study, “Two years ago, we stopped being able to only remarket policies that had more than 15% increases. Now, everyone has to be reviewed against all markets.”
This historic hard market, which we recently discussed here, has also led to a historic rise in excess & surplus market growth. In 2023, S&P Global reports that the E&S market grew 14.5% in premium. That means the U.S. E&S market now constitutes 9.2% of the country's total direct premiums written in 2023, up from the 5.2% market share for 2018.
As agents continue to push through this hard market cycle, they frequently face renewals that require more information, additional underwriting, and repeated remarketing. So, is there a new—or different—approach to E&S renewals that would help make them more efficient for agents, brokers, and their insureds? We talked with QuoteWell—a wholesale broker and InsurTech—about what they’re working on for innovation in this space.
The combination of tougher underwriting guidelines and reduced carrier appetite has led to longer turnaround times for renewals.
“The combination of tougher underwriting guidelines and reduced carrier appetite has led to longer turnaround times for renewals. This can create bottlenecks and delays, impacting client satisfaction and retention rates,” says QuoteWell founder and CEO Joey Bouchard. “We felt innovation was long overdue in the space. This market is seeing retail agents remarket 60% - sometimes more - of their commercial risks. Agents and carriers need workflows and processes that help them work with wholesalers more easily, including guided information gathering, sharing submission best practices, and real-time submission updates. Wholesalers are here to help agents find homes for those hard-to-place risks.”
Indeed, technology and workflow are two of the key areas of opportunity for retail agents marketing E&S risks through wholesalers. But what can they proactively do to improve the process from their end? What should they expect from wholesale brokers on their end?
“The quality of submissions plays a critical role in the speed and success of E&S renewals. For example, we walk agents through a ‘preferred risk’ guide that lets them know the lines of business that we’ve found to be available for that type of risk, the Acord forms/supplemental apps needed, and prompts them to begin the submission with this information ready to go. By improving the completeness and accuracy of submissions, agents can increase their chances of securing timely approvals.” says Bouchard. “And as far as what to expect from their wholesale broker partners – in what ways can they assist with improving your workflow? Do they have integrative tech that can support the process? If so, is your agency utilizing it?”
Providing quality submissions absolutely supports a more streamlined process for agents and brokers. With that in mind, are there resources that agents can utilize if they want to improve their submissions?
“Think of what you’re submitting as a ‘presentation’ of the risk”
“Think of what you’re submitting as a ‘presentation’ of the risk,” adds Bouchard. “Clearly outline the client's profile, coverage needs, and risk mitigation measures. This can significantly affect the process and turnaround time, as including detailed information and supporting documentation helps underwriters make informed decisions more quickly.”
Streamlining the E&S insurance renewal process is essential for insurance agents and brokers facing increasing challenges in today’s market. By leveraging technology, optimizing workflows, integrating systems, and enhancing submissions, agents can improve efficiency, reduce turnaround times, and increase client satisfaction.
All those efforts can lead to improved retention as well. It’s an approach that goes hand-in-hand with an updated strategy on retention. Knowing which clients will need more “customer care” at renewal time will also put you ahead of the curve. At ReFocus AI, we can help you identify those “at-risk renewal” insureds so you can put your process and plans in place at the right time.
