Think Differently In 2017
The definition of incorrect thinking is to repeatedly take the same action and expect a different outcome. As you think about your insurance program for 2017, it is time to expect a different outcome. This will cause you to consider different actions. To accomplish this, two things need to happen. First, redefine how you define success in your risk and insurance program, and second, create a new set of actions that correspond to your new thinking.
Under the old definition, most insurance buyers define success as a lower premium. Therefore, the action corresponding is to get as many agents involved to create competition to lower the price. Consequently, insurance buyers are happy if they get a 10% lower premium. The problem with this thinking is that buyers generally do not know what they are getting for the lower premium. They may have created a big risk management issue once an un-insured loss occurs.
A New Way of Thinking
A new definition of success is to have an insurance and risk program that address the risks you have, and choose to have, insured. Some risk you may desire to self-insure and others you may want to transfer to an insurance company. This way, you understand what you are insuring and what you are not.
Now that I have redefined your thinking, you need to create a new set of actions. Just bidding out your insurance to get the lowest price will not work anymore. You need to select an experienced and qualified agent that has the experience to educate you on your risks. The second action is to select an insurer that understands your industry. For example, some insurers are better at underwriting the hospitality industry, and others are better at manufacturing, and so on.
Call a few agents, interview them, get their qualifications, and ask them how they would design a program for your business. Start to think differently and you may get different and more effective results.