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Insurance carriers look at the profitability & losses
Posted on: December 20, 2021 at 09:12:55 CT
Joeboo MU
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of the clients that I have placed with them.
Best-case scenario I likely would lose some commission and/or bonus compensation due to the large loss.
Worst-case scenario an insurance company could pull my contract to do business with them if my losses are out of control over a multi-year period.
So that huge house fire in a vacuum likely isn't a huge problem, as long as my relationship with the company that insures the home is otherwise solid. But if I was already on shakey ground do to another large loss or two, that could be the straw that breaks the camels back and I may no longer have that insurance company as an option for my clients.
So we have to do front-line underwriting and attempt to avoid bad risks. Whether thats property characterists that make something a bad risk, or the characteristics of the individual that makes us feel like it might be a bad risk.
I don't just write every piece of business that comes my way. I've been at this long enough to have a pretty good sense for trouble.
Edited by Joeboo at 09:16:00 on 12/20/21
Best-case scenario I likely would lose some commission and/or bonus compensation due to the large loss.
Worst-case scenario an insurance company could pull my contract to do business with them if my losses are out of control over a multi-year period.
So that huge house fire in a vacuum likely isn't a huge problem, as long as my relationship with the company that insures the home is otherwise solid. But if I was already on shakey ground do to another large loss or two, that could be the straw that breaks the camels back and I may no longer have that insurance company as an option for my clients.
So we have to do front-line underwriting and attempt to avoid bad risks. Whether thats property characterists that make something a bad risk, or the characteristics of the individual that makes us feel like it might be a bad risk.
I don't just write every piece of business that comes my way. I've been at this long enough to have a pretty good sense for trouble.
Edited by Joeboo at 09:16:00 on 12/20/21
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Insurance carriers look at the profitability & losses - Joeboo MU - 12/20 09:12:55