Selection criteria for sports organizations
A prior blog post explained why sports and recreation organizations shouldn’t follow the traditional insurance bidding process of allowing multiple agents to approach the limited marketplace of insurance carriers and managing general agency (MGA)*. To follow-up on this, below are suggested selection criteria to choose the most qualified agent/broker so that such agent can approach the entire marketplace.
Insurance Agency Qualification Checklist:
- 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 MGAs 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 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 and Accident, & Health for all states of organization’s operations
- Website services including online enrollment, self-issuance of certificates of insurance, educational articles, risk management reports, forms, articles, programs, etc.
Insurance Agent Qualification Checklist:
- 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/recreation 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/recreation organizations
- Number of proposed client meetings throughout year to review insurance and risk management programs
- Renewal strategy philosophy
- Disclosure of commissions and fees earned
- Attendance at meetings trade shows or speaking engagements on behalf of organization
Carrier/MGA Qualification Checklist:
- M. Best rating for financial strength
- Number of years in sports/recreation insurance niche
- Number of similar sports/recreation insurance clients
- Premium volume of similar insurance clients
- Names of similar sports/recreation insurance clients
- Philosophy on acceptable loss ratios
- Claims services offered
- Risk management services offered
- Licensed in all states where organization operates
- Other services provided
*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.
