As your risk management insurance is coming up for renewal soon, it may be time to consider the benefits of shopping around rather than automatically renewing your current policy. While letting your policy auto-renew might be the easiest solution, performing an RFP or informal RFP every few years could present several opportunities that could benefit more than just your Financial Institutions bottom line.
What are the most important factors when you are shopping around?
Cost
Most likely, cost would be at the top of the list if you were in search of a risk management agency to handle your portfolios for the first time. In today’s competitive market, price is often the leading factor that will make or break a deal. Continuously auto-renewing a policy doesn’t give you the opportunity to know what other insurance carriers are charging and what premium cost-savings could be available. Shopping around for a better premium price gives your financial institution the chance to determine the most cost-effective options. Not only could it save your company money, the premium and FTE savings can be reallocated to other departments or resources.
Product Offerings
In such a competitive market, Managing General Agents are constantly coming up with new Risk Management Solutions and product offerings to make their services more appealing. Providing valuable products that meet their clients’ needs is a high priority. It is probable that new products or policy embellishments have emerged since you last went out to bid, and your existing policy may not be reaping the benefits of what’s on the market today.
More than likely, at the rate the market is changing, so are the needs of your Financial Institution. And as your Financial Institution grows, it is important to ask if your current coverage is still meeting everyone’s needs. Taking the time to evaluate if these needs are still lining up with your existing coverage could be a valuable exercise. Going out to bid can help make you aware of what other carriers are offering. Having choices gives you leverage, and by knowing what’s available, you can make informed decisions, even if the decision results in staying with your current vendor.
Technology
Technological advances are happening at a rapid pace. This is good news for you. Claims can be paid more quickly and with more accuracy, and the reporting capabilities are endless. Is the company that is handling your business keeping up with the times? Are you benefitting from the resources that are currently on the market? And is your company being protected with the latest and greatest security to minimize your risk? Even if you are happy with the policy, there may be other services that a company offers from a technological standpoint that could be a reason to switch.
The Basics
Your time is precious and valuable. At the end of the day, are you spending too much time searching for answers that should be readily available to you? Are you receiving the customer service and responsiveness you desire? Do you trust the organization that is responsible for handling your claims? Think of the qualities your organization strives to meet and be sure you are receiving the same level of service from your current vendors.
If your current policy is coming up for renewal and you are considering going out to bid for your consumer loan related insurance products, please call us at 888-600-4436 to discuss your needs and learn more about the products and services at Lenders Risk.