Selection Criteria For Insurance Agents / Brokers: Sports / Rec Orgs

Source: sadlersports.com - Selection Criteria For Insurance Agents / Brokers: Sports / Rec Orgs
Author: John Sadler

A prior blog posting explained why it is not a good idea for a sports and recreation organization such as a sanctioning / governing body association to follow the traditional insurance bidding process of allowing multiple agents to approach the limited marketplace of insurance carriers and MGAs. Now, to follow is some suggested selection criteria to choose the most qualified agent / broker so that such agent can approach the entire marketplace.

Insurance Agency Qualifications:

* Special department dedicated to sport and recreation insurance risks

* Number and names of similar sports / recreation organizations insured

* Premium volume of similar sports organizations insured

* Carriers or MGA’s represented for each policy type

* Premium volume and special relationships with each carrier / MGA to be approached

* Resumes of key servicing staff including experience in sports / recreation insurance niche

* Specific staff that will be assigned to service account

* Claims management services

* Loss analysis, forecasting, and rate justification services

* In house authority to issue certificates of insurance

* Injury tracking services and automation

* Training on employee injury reduction, premises safety, auto safety, special events safety, etc.

* Special risk management services for sports and recreation organizations

* Agency license for both Property & Casualty and Life, Accident, & Health for all states of  organization’s operations

* Web site services including online enrollment; self-issuance of certificates of insurance; educational blogs; risk management reports, forms, articles, programs, etc.

Insurance Agent Qualifications:

* Resume of insurance agent

* Number of years of experience in insurance industry

* Number of years dealing with sports and recreation accounts

* Title or position within insurance agency

* Ownership in insurance agency

* Special training and designations such as CPCU, CIC, etc.

* Producer license for both Property & Casualty and Life, Accident, & Health for all states of organization’s operations

* Carriers / MGA’s to be approached for each policy type

* Names and contact information of similar sports / rec organization clients for reference check

* Membership in professional trade organizations in insurance industry

* Board of director positions or committee assignments on behalf of sports / recreation organizations

* Publications on insurance and risk management on behalf of sports / rec organizations

* Number of proposed client meetings throughout year to review insurance and risk management programs

* Renewal strategy philosophy

* Disclosure of commissions and fees earned

* Meetings / trade shows / speaking engagements on behalf of organization

Carrier / MGA Qualifications:

* AM Best rating for financial strength

* Number of years in sports / recreation insurance niche

* Number of similar sports / rec insurance clients

* Premium volume of similar insurance clients

* Names of similar sports / rec insurance clients

* Philosophy on acceptable loss ratios

* Claims services offered

* Risk management services offered

* Licensed in all states where organization operates

* Other services provided

** MGA is an abbreviation for Managing General Agency. An MGA is an insurance organization that provides some of the services that are normally provided by insurance carriers in exchange for a fee. Examples of common MGA services include underwriting, policy issuance, loss control, claims administration, and marketing. The MGA as a middleman does not increase the cost of doing business since they provide services that the insurance carrier would be required to otherwise provide. Therefore, the existence of MGA’s reduces the expenses of the insurance carriers.

 

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