Roundtable: Taking advantage of the accessible underwriter 

Six takeaways from the Markel-sponsored roundtable at Broker Expo

Attendees

• John Batty, director of technical services, Bridge Insurance Brokers
• Peter Robinson, managing director, Prizm Solutions
• Chris Matthews, AJG SME placement, AJG
• Charlotte Harrison, head of regional broker development, Markel UK
• Catherine Rhodes, head of renewals underwriting, Markel UK

Insurance Age brought together a group of brokers and representatives from Markel during Broker Expo to discuss the key traits and benefits of ‘the accessible underwriter.’ Saxon East reports on some of the most notable talking points from the conversation.  

Underwriters should be trained, not left to become data processors

Brokers praised Markel UK for investing and training in underwriters.

It’s about having the courage and confidence to make decisions and not refer back into head office all the time, which is what we see as brokers far too often.

Proper underwriting training was seen as key to winning brokers’ attention, loyalty, and respect.

Charlotte Harrison, head of regional broker development, said: “We’ve also expanded our distribution team to ensure that when we’re out in the region, we understand the breadth of your teams as well the challenges that you face.”

Catherine Rhodes, head of renewals underwriting at Markel International, said: “We spend a lot of time training our underwriters. We’re conducting employee engagement surveys every couple of years. We’ve taken feedback on board, with extensive training programmes in place to support their development.”

One broker said: “The people Markel employ are good people. They’re specialists in their areas. So many insurance companies employ just data processing parts and call them underwriters. Markel trains people well.”

Empowering your underwriters and building confidence is key 

Brokers bemoaned the state of underwriter decision making in today’s market. Too many underwriters need head office support to make decisions, the session heard.  

One broker explained: “When you go to see somebody to seek reassurance, or for a suggestion or solution to an underwriting problem, and they need to seek further reassurance, that just adds to the timeline.”

Another broker urged underwriters to stand tall and have independence on decision making.

He said: “It’s about having the courage and confidence to make decisions and not refer back into head office all the time, which is what we see as brokers far too often.”

Rhodes explained it was important to have the right balance. It was possible for an underwriter to have too much authority which can lead to them being cautious in their decision making.

The panel heard it was imperative to build an underwriter’s confidence, so the underwriter knew when to refer and when to make decisions independently.

Harrison said: “You have to have that culture where you are coaching people and it’s one where we invest. We invest in monitoring as well, whether it’s call times, report times, or quick decision making.”

Paying claims breeds broker confidence and support 

When it came to paying claims, brokers expressed their frustrations. Insurers declining to pay claims related to Covid had been a ‘PR disaster’ and was a ‘terrible’ outcome for the industry, it was heard.

Outside of Covid-related claims, there were still too many cases of insurers applying reservation of rights or proportionate remedy at claims.  

Harrison said: “The moment of truth is when there’s a claim. Looking at the stats in terms of monitoring, we pay a very high percentage of our claims.”

Brokers praised Markel for standing by them at claims.

An independent broker boss, who runs his own firm, said: “You employ some good people. You know what you are doing. You have very tight parameters and decide to do only certain things, not for everyone on the planet, and are very careful about what you’re doing.”

This contrasted with other insurers who chased growth but ended up with claims issues.  

One broker said: “We’ve seen insurers that have gone into a new area, and they’ve got burned and come out. For a broker that is the worst outcome.”

Insurer AI is driving improvements across many areas 

Harrison believes AI can help underwriters become ‘more informed, quicker’.  

We’ve seen insurers that have gone into a new area, and they’ve got burned and come out. For a broker that is the worst outcome.

For example, AI can help insurers quickly understand levels of interest at renewal and new business, saving time and driving efficiency.  

Elsewhere, it can provide additional useful information for underwriters. Data points can be displayed in a more efficient way. 

Harrison said: “It isn’t to replace that human interaction, that human touch. I would say to an underwriter, if you’re looking at investing in technology, it is to enrich your conversation quickly with the broker.”  

Rhodes added: “At Markel, we are investing in AI, looking at how we can make Markel better at underwriting.  

“If we don’t do that, somebody else will and we’ll get left behind.”

Explaining one benefit to brokers, she said AI had helped Markel move faster to respond to risks. This meant brokers were not left waiting for answers.  

MGAs are in favour, but they must be specialist 

A major topic of discussion was managing general agents and the role they play for brokers.

The panel heard that MGAs are a favourite option for many brokers. However, their role was best served in specialisms rather than vanilla business.

One broker said: “I think where an MGA is successful is when they have a real niche in their subject matter, and there is a clear benefit in using them.

“Otherwise, there is very little point unless it is price.”

Another participant said: “We look across our book, and with the usage of MGAs, there has to be a justification of why we are doing that.”

The panel heard about one cyber MGA that offers specialist prevention and data monitoring software. The software was easy to use for the clients as well, making it a real differentiator.

He said: “That for me is not an insurance product. That is a service industry.”

Harrison added: “Where Markel can help, in terms of specialty, is making sure we are absolutely clear on what our proposition offers. There is a lot of end customer support we offer as well.”

Make underwriters accessible 

A broker said it was easy to become over-reliant on email as a way to communicate with underwriters. Brokers should be ready to take a phone call or have a meeting online, as well as face-to-face.

One participant said: “We encourage our staff to go out of the office and present to underwriters. Don’t just email them. Pick up the phone, speak to them, go and talk to them.

“Understand the risk and make the underwriter understand the risk you are looking at.”

Harrison stressed that Markel’s strategy is focused on adequate facetime with brokers.

She said: “We have invested in development underwriters and part of their role is to be in brokers' offices. It links back to my earlier point on expanding the distribution, with broker-facing teams. They’re the window into Markel and our specialist products. It is important to match up the right people within your teams.”

The group discussed how working in an office made underwriters more accessible. While remote working is an important part of the mix, office working had some tangible benefits.

A broker said: “If the underwriters are working together in the office, they will gain confidence from their colleagues to build up that right knowledge and make those decisions.”

The panel also heard there is a ‘well-being’ advantage to having people together in an office. 

Harrison highlighted Markel’s supportive approach and emphasis on hybrid working. Getting the right balance of office and remote working was crucial.

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