The role of brokers in easing challenges in commercial auto underwriting

The role of brokers in easing challenges in commercial auto underwriting | Insurance Business Canada

Motor & Fleet

The role of brokers in easing challenges in commercial auto underwriting

Experts from Sovereign Insurance share their insights

Motor & Fleet

By
Mika Pangilinan

The commercial auto insurance space poses unique challenges for underwriters due to the complex nature of transportation risks.

In a recent episode of IBTV, experts from Sovereign Insurance shed light on the crucial role that brokers play in mitigating these challenges and ensuring effective loss control for commercial auto clients.

Contents

The importance of brokers in gathering information

Marcus Ouellette, manager of national auto underwriting, highlighted the fundamental role of brokers in collecting crucial information to assess risks accurately.

Brokers who specialize in the field can effectively collaborate with underwriters, he noted, as they provide the necessary data and insights to make informed decisions.

Additionally, loss control experts contribute to the underwriting process by conducting onsite surveys and gathering valuable information directly from the insured.

“Underwriting is all about assessing the risk,” Ouellette said. “And assessing the risk means gathering and analyzing the information that we need. It’s so important in the process.”

Specialization and trust: brokers as advisors and advocates

Meanwhile, Kevin Stedman, AVP – commercial solutions, emphasized the significance of having brokers that specialize in the transportation sector.

According to Stedman, brokers need to possess comprehensive knowledge and understanding of the risks involved, ensuring they communicate essential information needed by the underwriting department.

Additionally, brokers must also educate clients about potential risk impacts to their businesses, acting as trusted advisors.

“They’ve got to be an advocate, too, for the client and insured,” Stedman said.

The complexity of transportation claims

Abigail Bibby, national claims specialist, also highlighted a common oversight in the transportation sector.

While transportation claims may often be low in value, their complexity is often underestimated, Bibby said, noting that this is often “overlooked by brokers and underwriters and the sector as a whole.”

“If you don’t have the right people involved in this, that don’t have the requisite knowledge, you’re going to come up, you’re going to encounter issues and problems and challenges from basically front to end when dealing with transportation accounts,” she added.

The value of collaboration and preparation

Finally, Kevin Dutchak, team lead – commercial auto, emphasized the importance of collaboration and preparation during risk surveys.

Drawing from his own experience in the trucking industry, Dutchak highlighted the benefits of engaging with brokers during the survey process.

“A risk survey is meeting with the broker beforehand and preparing for that survey so that we’re both on the same page,” he said. “We both have an understanding of what we’re both trying to achieve, and it really makes it go a lot smoother.”