If you remember that song “Who let the Dog out” then maybe it’s time to let the CAT out!
The CAT is a “Commercial Audit and Training program” to assist mutual insurers in improving risk selection, pricing and acceptance through risk reviews and quality control.
Commercial insurance is a more complex but also a more profitable product than personal lines. However, in today’s trying times and hard market, it can be more difficult to select the better risk and price them to be acceptable to the customer, as well as meet the profitability needs of the insurer.
Profitability of commercial insurance is dependent on the training and experience of the underwriters who are responsible for acceptance and pricing of risks on the books or being offered as new accounts.
Not all underwriters, agents and brokers are experienced in hardening markets and how to manage pricing effectively in order to retain profitable business while selecting out more problematic risks.
Mutual Insurers may see the need to enhance the training and experience of their underwriters to effectively write and price adequately various commercial risks found in their community. Commercial training may not have been at the same pace and level as large mutual and stock insurers. In addition, the underwriting protocols and audit functions required to ensure proper risk acceptance and pricing may have less that adequate strength.
Most mutual insurers have premium volumes that are largely through the broker channel and brokers can provide better quality of business to those mutuals that also write commercial lines and can compete with the non-mutual carriers. Consolidation of insurance brokers by several consolidators has reduced the number of brokers available and Mutual insurers that wish to maintain relationships with brokers and the consolidators, need to increase their value added in commercial lines. For competitive reasons, mutuals may wish to consider a CAT program.
“Commercial Insurance Management Professionals” provides CAT programs so you can let your CAT out! Check out further info on the CIMP.ca website under the IO App section.