Andy Ray is accustomed to being flexible when it comes to serving clients—“flexible” in the most literal sense. He has worked on policies insuring commercial vehicles that have had their drive shafts transferred from the vehicles' left to right side for India's roads—and ensured these policies could respond to India's court system should a client be sued.
As an underwriter for Midlands Management Corp., a general property-and-casualty MGA headquartered in Oklahoma City, Ray has boundless experience in hard-to-place coverages. Much of his work keeps him busy in Texas, Oklahoma and surrounding states. But customers doing business overseas also seek his expertise, including an architectural firm bidding on a large repair-facility project in Saudi Arabia.
“Here in the U.S., we see anything from the small account to the huge,” says Ray, who is based in Midlands' Dallas office. “For instance, we recently have been trying to place a rather large gravel dealer with an accident history. You use your past experience to help you figure out the best way to handle the account.”
It's a creative undertaking that involves working closely with retail agents and carriers—and combining primary and excess coverages—that get policies written and bound. Ray works with several large carriers, including Markel and Travelers.
RESPONDING TO ECONOMIC DOWNTURN
The slowdown in residential and commercial construction requires Ray and his colleagues to be more wary when underwriting contractor accounts—especially when these accounts have not carried insurance for a while and want to premium finance their premium.
“Once upon a time when construction was booming, a contractor would keep his insurance for the year because he had ongoing jobs,” Ray says. “Now, contractors may believe they don't have need for insurance. They make the down payment and, once a job is done, they don't pay their premium-finance note.”
Likewise, Ray's colleague Patricia Songer says the economy has taken its toll on small restaurants, manufacturers and businesses in Oklahoma. Songer is a vice president in Midlands' Oklahoma City office.
“In general, smaller businesses are either downsizing or shutting their doors,” says Songer. “We do have to adhere to the carrier's guidelines, but we look for ways to meet the needs of customers and carriers. For instance, some carriers have lowered minimum premiums over the last couple of years to accommodate those smaller accounts that have downsized.”
Flexibility in today's market also demands being extra visible to agents. Among other marketing tools, Midlands sends out regular e-blasts to retail agents, Songer says. On the pricing front, Songer and colleagues try to schedule credits and debits where available. She says, “Most carriers can offer up to 25 percent just to be competitive with one another.”
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