Agency Business Food Chain
A key difference in our business model is that the underwriting agent has much of the responsibility and authority normally assumed by the insurer. We outsource all the normal non-core insurance activities and functions to them.
They have the freedom to make decisions, create new products or develop new markets and, where such opportunities fall within the agreed business plan and underwriting authority, there should be no need to refer decisions to us. They may even distribute through other brokers or intermediaries or use the services of third party administrators if they do not have a particular resource, for example claims handling, in-house.
We acknowledge their expertise in their fields and trust their judgment. The result? Lower claims ratios and better profit margins for all.
See the Food Chain Model for a further illustration.
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