  Frequently Asked Questions
Q: Can’t I use a broker to acquire insurance benchmarking information? A: Yes, many clients use various methods to benchmark their existing insurance costs. One way is to go through the time consuming process of interviewing brokers and making a selection. This is usually a localized effort that yields local underwriting comparisons. CMR takes that benchmarking effort nationally and internationally by matching your specific requirements to specialty brokers and direct writers, taking the interviewing process off your desk and onto ours. The insurance industry is very fragmented in the way it delivers product – our methodology makes the delivery process more efficient and beneficial for the client. CMR matches the client's SIC code to the broker’s area of specialty (their SIC niches) on a national and international basis. For example, a publishing client in New York might be paying $1.78 per $1,000 for their General Liability premium, and we might find a broker who has publishing clients elsewhere who are paying $1.25 per $1,000.
CMR has researched 3,500 Property/Casualty brokers and direct writers organized by criteria that includes SIC codes, premium volume, profitability of premium, number of employees, group size ranges, self-funding expertise, TPAs, etc. In addition, CMR has researched 600 brokers and direct writers in the Group Benefit area (Medical, Disability, Pension, 401(k), etc.). To our knowledge no one else has developed this extensive research resource. Our database is a US registered trademark (The CMR Database®).
Q: What if CMR’s recommendations are better quantitatively? A: There are usually three components to a satisfactory insurance program: price, coverage and service; not necessarily in this sequence. If you decide to change servicing brokers or carriers as a result of CMR’s review, be assured that CMR invests significant time to review in detail what the new broker and/or carrier will be doing for you from a servicing standpoint, and CMR will specify this in writing, with delivery time lines. Additionally, CMR will be there for you on a quarterly basis to ensure a new transition is successful, if you choose to do so. Q: If CMR’s program is the right fit can I continue to use my current broker? A: Yes, your broker always has the opportunity to respond to CMR’s final report. Working with incumbent brokers, CMR is often able to effectuate lower premiums and improve both coverage and servicing. Q: Do I need to change my renewal date(s)? A: No, many of our clients keep their historical renewal dates if it is advantageous to do so. Sometimes scattered renewal dates are consolidated as it might make sense to take advantage of the economies of scale by having one master date. Q: How much time does the benchmarking take? A: For premiums less than $500,000 – 3 hours For premiums greater than $500,000 – 3 days Q: What information will you need to do a benchmarking? A: Property Casualty: A copy of a current schedule of insurance identifying type(s) of policies, renewal dates, basic limits, insurance company (ies) and premiums. Group Benefits: A copy of the last two monthly billing statements from the insurance company, summary plans description(s) and an employee census with zip codes Q: My broker said he/she has shopped my account aggressively – what could CMR do to improve? A: All brokers have different relationships with their insurance companies; even the largest brokers tend to favor certain carriers. Our benchmarking process will show you quantitative rate ranges with what other clients are paying in your industry category through national or international comparisons. The results will be valuable intellectual capital that clients use to make effective decisions. Q: Is the benchmarking confidential? Meaning will my current broker know? A: The benchmarking is totally confidential – we compare some basic rating characteristics contained within your portfolio to what similar companies in your industry are paying, nationally and internationally; results will uncover pricing differences on a carrier level by using different geographic comparisons and different entry points. Q: Is the savings just for one year? A: No, we lock in the savings for three-years and we have the incentive to continue looking for further options for policy-years two and three; meaning as The CMR Database® expands and is continually updated, as there could be additional broker specialist(s) involved to further lower premiums for policy year(s) 2, 3 and beyond. Q: Will coverage be the same? A: Yes, we put it in writing that your coverage, deductibles, limits, etc., will have to be similar or better than what you currently have. Q: What about the financial rating of insurance companies? A: In our engagement letter we put in writing that any insurance company participating will have a minimum of A.M. Best “A – X” Category. |
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