According to ratings agency A.M Best, the country’s property and casualty insurance industry saw an 86% drop in underwriting income in 2020 – falling to $600 million compared to $4.5 billion for the same period in 2019. Workers’ Compensation carriers specifically are being tested in the marketplace like never before; loss costs have been on a downward trend, combined ratios have been climbing for years, and the pandemic has put fuel on the hard-market fire thanks to potential premium credits resulting from pandemic layoffs, furloughs, and business closures.
Trying to cut their losses, insurers will aim to more closely scrutinize new business submissions and select and price risks with a new level of accuracy and efficiency. Insurance agents can get the best rates for their clients and expedite the quoting process if they thoroughly complete the necessary applications.
Our team of underwriters has compiled a list of “must haves” for Workers’ Compensation applications that will move your submission to the top of the carrier’s stack every time:
Workers’ Compensation (Acord 130)
1. Applicant Name
2. Years in Business
- This is very important for our underwriters and lets us know what carrier would be a good fit for the operation. Also, if the company has been in business for 5 years and they’ve never had Workers’ Compensation coverage, we need to know that and why.
- We often get the mailing address for the company instead of the physical location. If it’s the same, put ‘same’ so we don’t assume that it’s blank.
- We need a full physical address for every business location with associated payroll.
5. Payrolls by State
6. Class Code
- The onus is on the retail agent to provide the correct class codes for the operation. If you are unsure about the correct class code, you can contact NCCI directly at 1-800-622-4123 and select Option 5 (you get a real human and they are very quick and helpful). If you are in a Bureau state, NCCI will give you the contact information for your Bureau.
7. General Information Section
- Questions 1-24 should all be completed.
- If you answer yes to any of the questions, please provide additional detail on them.
8. Nature of Business / Description of Operations
- The more detail the better. This allows us to expedite our quoting process and get you to the best fitting carrier faster. This information can be provided in the body of the email or on the application – whichever is easier.
9. Loss Information / Experience Modification Factor
- If the company has been in business and has one, our underwriters need detailed loss information and the experience modification factor.
10. Coverage Lapses
- Has there been a lapse in coverage? If so, when and why?
11. Other General Items
- Is the incumbent non-renewing?
- Send all of your attachments and submission information in one email, rather than piecing it out over multiple communications.
- Provide any information that favorably positions the operation – safety programs, employee training, etc.
- Do you have a target premium? Let us know so we can negotiate the best rate for you with our carriers.
The National Alliance is offering a new series designed to train insurance agents on how to properly complete ACORD forms. The online, self-paced ACORD Bootcamp increases efficiency, improves accuracy, and gets your ACORD submissions to the top of your underwriter’s stack.
Jencap has long-standing and trusted relationships with our carrier partners. With our large books of Workers’ Compensation business, we have broader underwriting guidelines and more negotiating power with our carriers to get your deal done. Help us help you with the above information. Contact us today to get started.