MC Today News 3
Distribution costs must reduce
Reducing the cost of distribution is
a key concern for clients of Sequel,
a Verisk business that focuses on
complex commercial and specialty insurance
software innovation. Chief commercial officer
EMEA, Paul Latarche, told Monte Carlo Today
that carriers are looking for ways to reduce
the cost of access to certain business lines.
“It’s hard to make an underwriting profit,
and it’s even harder if you are paying 30
percent away before you even see the business,
because you’re going to pay the agent, the
broker, the wholesaler and the coverholder,”
“You are already 30 points behind before
you start writing something. The cost of
distribution is a big concern, along with the
cost of then administering the back-office
systems that support it.”
Sequel’s product, Rule Book Hub, is
proving popular as a way for insurers to access
brokers’ distribution much more efficiently.
He added that Rule Book Hub brings
control to delegated business—the carriers
now have no bordereaux. Instead of having to
wait to know what they are insuring until five
to six weeks after it is live, carriers have the
“This gives you a lot more control when
you give that pen away—you set up the rules
in the system. They can write only up to that
amount, these are the products, this is the
geography, right down to a rule so if they try to
do anything around that, the system will reject
it or refer it to the underwriter,” he explained.
The cost savings are another major
“The new major broker we brought on
to the platform is telling its insurer clients
it is expecting the platform to save up to 10
percent of the cost of doing business.
“There is no more rekeying, and if it’s
inside the terms of the rules they get a quote
back straight away.” l
Insurers load their insurance products into it
and brokers trade risks through it.
“It was launched about 18 months ago and
is picking up a lot of volume,” said Latarche.