Since many carriers have underwriting and medical departments that may lack extensive substandard underwriting experience, and despite their best efforts, they are leaving unplaced millions of dollars of profitable premium on the table. Our analysis estimates the present value of lost future premiums can be up to $100,000 per case.
Underwriters are concerned about passing their internal and reinsurance underwriting audits. If a doctor’s report says an age-appropriate test is recommended and the client doesn’t have it done – the underwriter’s response is to postpone. Can't locate a pathology report from a cancer history years ago? – postpone.
Unplaced business may cause your agents to get frustrated and explore relationships with other carriers. Recruiting new agents may become more of a challenge. Your company could suffer reputational damage and unnecessarily high unit costs.