Rate Locks and Renewal Agreements

I often try to negotiate a rate agreement when I am working through an insurance renewal bid project for a client.  I want an agreement with the underwriter that the renewals are going to be handled in the same “Spirit” as the bid.

Here is a response one underwriter gave:

“Our methodology would be the fact we have our Accelerated Renewal program where our clients who qualify are given the opportunity to agree on renewal terms well in advance of the renewal date.

“This process can assist our clients need to budget for their insurance expenditures well in advance of the actual renewal date.  We can negotiate our rate need (plus or minus) based on loss experience over the policy year or the industry trending at that time.

This  program allows us to process  the renewal based on expiring/endorsed exposures without the client providing applications and/or supplements.”

This is a fine compromise.  We get to know renewal pricing early so that we can decide what to do – stay with the carrier or seek alternative proposals.  Fair enough.