When The Standard Market Says No
Lets face it, rejection happens.
Most risks will find placement on the standard market among admitted insurance carriers.
But not all.
Standard market risks are considered to have favorably low exposure to loss, are traditional in their coverage needs and fit into typical insurance programs. Often computer programs with mathematical algorithms can provide automated quotes. Or underwriters reference customary guidelines to handle such submissions. Examples are the typical home, auto and life coverages of the world.
In contrast, “Hard-To-Place Risks” are most often rejected, declined or canceled by admitted carriers on the standard market. Why? It is due to their excessive exposure. There is not enough risk appetite. Or, the unique coverage needs do not fit typical underwriting criteria.
With the assortment of risks and insurance needs out there, there are numerous reasons submissions will fall outside the boundaries of the standard market.
What are these underwriting features and characteristics?
Stay tuned for the next post in our “Hard To Place Risks Unpacked” Series!