A risk pool administrators’s dream: quality property data and accurate valuations.
You have a lot on your shoulders and need confidence in accurate data and values as you prepare for renewals. But with so much information out there and daily responsibilities on your plate, you don’t always have time to invest in discovering what steps to take.
To ensure confidence in your premiums, ensure that you’re proud to report your data to management, and to feel less pressure, make sure you’re aware of these common issues. Then, take some time to ask yourself a few questions to ensure you’re not overlooking any critical steps.
Plan for the timing of your appraisal project properly
Many pools fail to anticipate how long the process will take to kick off, complete, and gain meaningful data and reports. Space out your multi-year engagements (if applicable) and establish the appropriate time frame.
When will my underwriters/reinsurers need their final data and reports?
What’s an appropriate (and achievable) time frame?
Involve your underwriting team and reinsurers
Many pools will collect data but later notice it wasn’t everything they needed and they’re now missing data. Instead, working with an asset valuation firm like HCA will help ensure you’re collecting the required data at the right frequency.
Many don’t think to involve a reinsurer. It’s important to reflect on stakeholders upstream and how your data needs to be presented back to members and/or insurers.
Who will be using my data?
How do I want this data presented to members and insurers?
Establish the proper threshold for property to include in the appraisal process
One of the most critical decisions you’ll face is selecting an appropriate threshold for property to be appraised. This typically involves weighing project cost against the anticipated benefit.
Invest in a cost benefit analysis and determine the data you need versus the data you want.
What data do I truly need?
Are lower-valued exposures on member SOV’s accurately stated and valued? If not, am I missing out on reasonable premiums for unknown risks I’m assuming?
What steps can I take to ensure I’m not missing any properties or assets?
Know all the steps to take during an appraisal program
The appraisal program process can be overwhelming. How do you ensure you’re not missing out on anything?
Click here to download our free Guide for Underwriters, complete with more mistakes to avoid, extra questions to ask yourself, and a comprehensive checklist to guide you through the process.
If you have any questions about any of these mistakes or fear that you may be making them, reach out to us. We’d be happy to help.