Best’s Review: How to Make the Perfect Pitch of a New Product Idea to Insurers — Video Included
June 5, 2014 by Lynna Goch: lynna.goch@ambest.com
OLDWICK, N.J. – Best’s Review’s June cover story, “The Perfect Pitch,” reports on the science of developing the perfect presentation of a new product idea to an insurer.
According to the Target Markets Program Administrators Association, program business has a renewal rate of 84%. However, that means program administrators need to bring in 16% of new business each year just to stay level. “[Program administrators] are always thinking about new products and what they can do to improve. The successful ones are not the ones who sit still,” said Marc Willner, the executive vice president of Ironshore’s program division. Having reviewed 115 program submissions in 2013, Willner can pinpoint precisely what moves a proposal to the top of the pile — the line or class, the business plan, the underwriting and the data.
“I like to see concrete steps. A lot of times you’ll see an MGA saying, ‘The first year we can do $5 million, the second year we can do $7 million, $12 million in five years.’ With no details. What we like to see is: If this is a start-up program, how are you going to get to that $2.5 million or $5 million that first year? How are you going to continue the growth? What are your marketing plans? What skills are you bringing to the table that will generate that much premium? The marketing plan is important,” Willner said. To watch a video about this article go to http://www.ambest.com/news/br614p20.html
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“When the Show Can’t Go On” reports on how to sell event cancellation insurance — watch a video about the article http://www.ambest.com/news/br614p47.html
“Searching for Yield” reveals how insurance asset managers are reacting to the Federal Reserve’s “tapering” process. Watch this video about the article http://www.ambest.com/news/br614p43.html
Best’s Review is published by the A.M. Best Co., for insurance professionals, including home office executives, agents, brokers and others affiliated with the industry.
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Founded in 1899, A.M. Best Co. is the world’s oldest and most authoritative insurance rating and information source. For more information, visit www.ambest.com.
(By Lynna Goch: lynna.goch@ambest.com)
