CHART’s core principle is best articulated by the very definition of the word “Exchange” – to give something of value in order to obtain something of greater value. As you may already know, we became a permanent membership organization earlier this year. An annual dues structure was established to both allow us to begin recouping start-up costs, hire staff, and help us fund on-going administrative expenses.
Membership dues represent the “contribution” current and prospective Coverholders are asked to make each year to become a part of CHART. But what is the value proposition for these agencies – what is the greater return they can expect? Over the next couple of months, we will be taking a closer look at the numerous benefits that can be realized by becoming a member of the organization. In this edition of The CHART Exchange Magazine, we will focus on the Market Finder Facility.
Many insurance agencies come to CHART with a new program or product idea. The Market Finder Facility was established to help turn these concepts into a reality. Our Broker Partners possess the expertise, industry contacts, and access to the decision makers and markets needed to get the deal done.
The first step in the process involves completion of the Program Questionnaire. The format is designed to help the CHART team and our London Broker partners better quantify the opportunity.
What are the risk characteristics of the target audience? What insurance products/ coverages are required? Is there any historical premium and loss history that can be used to forecast future underwriting results? What are the differentiators (product, price, services, risk management, claims process, delivery, etc.) that separate us from others already in the marketplace.
Once this assessment has been completed, our team is ready to move on to the “matchmaker” phase. In this stage, the CHART broker partner capitalizes on their in-depth knowledge of the marketplace to identify those Member Syndicates with risk appetites and capabilities that are most compatible with the prospective program being submitted. The Member Syndicates have entrusted CHART to bring them real business opportunities. Our experts will then arrange appointments between agency personnel and the most likely Risk Taker partners to determine next steps.
The true value of the Market Finder Facility becomes evident after there is mutual agreement to move forward on the submission. CHART Broker Partners can guide agencies through the process of securing Delegated Underwriting Authority (Coverholder status) from Lloyd’s of London. This guidance can take the form of business plan development assistance, provision of analytic/actuarial support, or providing explanations about the various compliance/ regulatory requirements that must be met.
We have built a U.S. Programs Development team that can be engaged to enhance a submission (legal, claims, loss control, competitive analysis, actuarial, Alternative risk transfer mechanisms, etc.) for our members.
Of course, not every program proposal presented to the Risk Takers will be accepted. CHART’S Broker Partners will ascertain the reasons for the declination and will work with the agency and CHART’s stable of expert services to help address the perceived deficiencies in the submission so that it can be strengthened for a future re-submit.
We will note here that both the member agency and Risk Takers have the option of selecting the preferred London Broker of their choice to finalize the program submitted through the Market Finder Facility. There is no obligation to utilize one of CHART’s partner entities.
The benefit to be highlighted in our next edition of The CHART Exchange Magazine: CHART’s Incubator Initiative.
-Glenn W. Clark , CPCU
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