Tuesday, April 29, 2008
While weâ€™re on the topic of risk management, insurers attending this weekâ€™s RIMS conference might want to stop by the Willis booth to check out a demo of the brokerâ€™s new carrier benchmarking tool, the Willis Quality Index. The tool will rate and compare carriers on their performance in underwriting, policy administration, claims performance and service activities. Last June the findings of the inaugural carrier survey from Willis (see our June 22, 2007 posting) indicated that insurers needed to do more to differentiate themselves through service and performance. The latest Spring 2008 survey found evidence that carriers across all parts of the business had scored, on average, better than in their last survey.Â Â
Meanwhile, RIMS and Advisen Ltd have released the Broker Services and Remuneration Study. This study finds that insurance buyers are driving brokers to change their service offerings and the way brokers are compensated. Buyers were surveyed on how their brokers are compensated, how much their brokers receive for their services and what types of services their brokers provide. For the industryâ€™s largest programs, buyers are spending the majority of their broker money on fees instead of commissions, the study reports. It goes on to quantify the differences in average costs to insurance buyers of fee-based broker remuneration, as opposed to traditional commission-based remuneration.