Companies are going to need to have a comfort level with the fact that you understand your programs marketplace. They may want to know that you know your retailers and their commitment to your program or to the niche. You must be able to show the carrier your marketing plan, while at the same time demonstrating that the program creates a spread of risk.

Here are some additional guidelines for putting together a winning presentation of your program for potential carriers.

Sell your program on content, not size.

When you put a program presentation together size is not important. Content is the key.

A one-page summary attached to your program is essential. This summary page is important, as carriers have been inundated with program proposals. If you are unable to capture an initial interest, your presentation runs the risk of never being opened.

The presentation should begin with one or two paragraphs about your firm, its history and the current management team with resumes.

Honesty is the best policy. Highlight strengths; explain weaknesses.

Every program has strengths, weaknesses, opportunities and threats. Be honest. Disclosing the negatives will carry a lot of weight.

What is your unique underwriting matrix? How are you controlling your program? What are the pricing triggers that help you decide when premiums need increases or if the program should be put on moratorium?

What is the plan on how your program will be updated as it develops? For example, if a guideline needs to be changed, does it just change or is there any type of analysis that goes into your decision-making process?

If the limits vary, what are your limits profiles? What is the split of business by coverage part?

Be a detailed historianand don't leave out bad facts.

The summary of the programs history should include written, as well as earned premiums and related loss data. If losses hurt the program in the past, include an explanation for what occurred along with an explanation of how it has been rectified.

Your complete loss history is essential. Accident-year numbers typically are best if you can provide them, but calendar-year data may work depending on the company reviewing the program. Three to five years of data are typically requested at a minimum, but the requirement may vary based on the tail (average time to claim settlement) of the particular class.

Completed and fully developed actuarial triangles for the years of experience that are associated with this experience will allow the carrier reviewing the program to gain another perspective. Most carriers will want to do their own actuarial work in addition, but it will be helpful to them to have your actuarial numbers provided.

If the program has had rate changes in the past, rate comparisons with graphs are helpful.

Make the carrier comfortable.

Your underwriting guidelines need to be able to provide comfort to the carrier that you know your class of business well enough to underwrite it to a profit. Therefore, your internal underwriting audit procedures should be apart of your underwriting matrix.

o Where's the opportunity?

The need for the program in the marketplace is a critical characteristic of your product. How does it fit into the marketplace? How is it unique? Where do the opportunities lie? Where does your expertise tie it all together?

There is a lot of effort necessary to put a strong program presentation into the marketplace. But following these steps will provide an excellent foundation to provide the proper expectations and results of your partnership with the customer, policyholder and insurance market.

Mark E. Maucere, a Certified Insurance Wholesaler, is the president of London American General Agency, a Certified Managing General Agency based in San Diego, Calif.

Reproduced from National Underwriter Edition, May 14, 2004. Copyright 2004 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.