This session’s panel provided insight into the policyholder’s expectations with regard to the scope of coverage being purchased and claims handling.  The panel discussed in detail what policyholders expect from their brokers and their insurers at the procurement stage, including during coverage negotiations and setting the broker’s fee, and also in the event of a claim.

According to the panel, the most frustrating issues facing policyholders today are as follows: brokers “over-promising” what terms they can obtain and creating unreasonable expectations; the use of irrelevant benchmarks by brokers; and the unjustified “shaving of limits” by insurers.  The panel also indicated that policyholders tend to see the value in placing coverage with insurers that have responded to covered claims in the past, but indicated that putting a number on that value is not always easy to do.

In addition to an insurer’s financial strength, the panel was in agreement that an insurer’s proven capability to manage complex, high-exposure claims also is a primary consideration that is taken into account when the company is weighing its renewal options.  The panel also provided insight as to how brokers, risk managers and coverage counsel each play a significant role in developing the policyholder’s insurance program.  The panelists noted that communication at every level of the process is critical to providing the policyholder with the protection it needs and making sure that the policyholder understands what is and is not covered under its policies.