submissionAs I sat staring at my email this morning trying to figure out why a prospect would not allow a Broker Of Record Letter on my two best markets, I had to ask myself one question. Did I educate this prospect so that they understand the meaning of BOR? What concept of this letter seems to spook a prospective buyer and more importantly what has their current broker stated about their position with those two carriers?

In the process of marketing an account, you have two factions playing against each other; incumbent, and prospective brokers. In this head butting of sorts, there are always reasons to allow the incumbent (who could be me at times) their choice of a few markets and allow another or even two brokers to quote other carriers. The truth is that this is not permanent arrangement and can be revoked at anytime if the prospect were to find themselves in a position of working with a firm you are not happy with.

Many carriers work with multiple brokers, however, a broker with a larger book of business through a carrier may have more connectivity to that carrier and its internal systems. Asking your broker to put their best for forward and select their three or four best markets will allow your incumbent to select from a relationship that they have established and work with regularly, but leave the other markets for another that may have a better negotiating power and thus offer the prospect the best opportunity to obtain the most competitive quote from all carriers so you can make a much more educated decision.

Simply put a BOR is a letter granting access to a market that may be blocked by a previous submission, however, you must agree that you cannot serve too many markets well and that there could be an advantage of working outside your current broker to investigate other resources that may benefit your organization in addition to a competitive premium or broad coverage. So consider when you market your portfolio annually, or biennially, there are many things that your outside broker will need , a BOR for his markets and a compelling case presented by any outside broker to an underwriter is always better when supported by as much data as you can send. Most importantly your loss runs.

Last point on re-marketing submission is that you need at least five (5) years loss runs and this will definitely get the incumbent in a defensive position.  However, it may also be just what you need to get the incumbent off dead center and dig in with their heels to show you that they have and will continue to earn your business and this is a win win for you.