What is Insurance Capacity
Capacity is Exance’s highly specialist review we do here of the insurance marketplace when our brokers are tasked with providing insurance for a particular program, such as Latent Defect Insurance (LDI). Most of our brokers’ clients want coverage, bonded protection guarantee as well as a competitive price.
Claims Ratio versus Expenses Ratio
The two ratios that cause fluctuation in the costs of premiums are the Claims Ratio and the Operating Expenses ratio. When premiums decrease, there are more insurance companies making money by aggregating more risks across the population.
When premiums increase, there are fewer insurers in the niche market, leading to a diminished capacity. If there are fewer plans offered, then premiums will go up to cover the risk involved.
Capacity Provider Insurance companies
Insurance companies make money by aggregating a whole load of people and spreading that risk across that population.
If there is a lower capacity, typically the insurers available are fishing out of the same pond. As an independent broker, you may need more resources at your disposal which is where Exance will come in to support you.
Issues with other low capacity Intermediaries
A lower capacity of a particular insurance forces the insurer to cover more of that risk. This means more claims with a higher claim ratio and lower margins for the insurance company resulting in higher premium costs for your clients.
Often, this means insurance companies leave the market to protect their risk assessment and underlying profit margin.
High Capacity with Exance
Exance offers capacity enhancement for our broker partnering services. This in essence brings down costs of premiums. Our reach allows our large network of insurance providers to drive their capacity in the right direction and offer great savings and cost reductions for our broker network.
How does Exance grow more capacity?
We have to remember that every insurer offers a guarantee for a certain risk that may or may not occur, right? The client who pays for the guarantee buys the insurance for a policy against that particular risk.
Join Exance’s fast growing partner network
So, with Exance our growing partner network means more insurance policies, which drives up the income for the insurer and offers cost savings and underwriting time needed for you the broker and your clients.
Exance gets more and more capacity driving more revenue to the insurance companies by aggregating this interest in all of our underwritten premiums.
This brings the premium cost down for the insurer and drives more revenue to the insurance companies, so it is a win-win for all involved.
Exance specialises in strengthening Capacity
Exance has the breadth and depth of trading to ensure that the network of insurance company underwriters have credible capacity. This enables you the broker to offer your clients the very best value premiums for your client’s specific requirements.
Get in touch with one of our team today.
When does Exance use Capacity?
Exance has the market’s leading leverage with Insurance Capacity. This allows our insurance intermediary arm to take on calculated risks through out network of insurance companies.
We have long last relationships with our insurance providers to offer you, our broker network the increased leverage for your clients offering stronger insurance capacity.
If you have a tricky insurance requirement for your boutique, specialist niche client, then we can spin the wheels efficiently and quickly to get you answers where and when you need them right now today.
How does Exance use Capacity?
Exance’s insurance capacity leverages our highly invested automation system saving you and us time, cost and resources to leverage our binder management and use of limits.
Get in touch with one of our team and start your onboarding process immediately.
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