Evaluating Your Insurance Professional

Man at iPad

by the Nonprofit Risk Management Center

No news is good news; except when people are griping behind your back. Many clients would rather complain about an agent or broker’s perceived poor performance, than speak with the person about where he or she is falling short of expectations. Compare what you consider important to the seven items listed below that other nonprofit’s value in their agent or broker, then evaluate your current insurance professional.

  1. Responsiveness
  2. Timeliness
  3. Credibility
  4. Commitment
  5. Claims handling
  6. Accuracy
  7. Results

An objective performance review begins with reviewing your agreement with the agent or broker. Then ask staff, the risk management committee members, and board members the following questions:

Broker Performance Review
In relation to the agreed to services to be provided by Broker _________________ to Nonprofit ________________________________________:

Did the provider fulfill the commitments detailed in the agreement discussed at the outset of the relationship? Yes or No

If No

  • Was the nonprofit in any way responsible for the broker’s failure to deliver?
  • If the failure to deliver was totally the broker’s, has he/she proposed a plan to fix the situation?
  • Have any steps been taken to ensure that the difficulty will not arise in the future?
  • Are you confident that the broker will be able to live up to his or her commitments in the year ahead?
  • Are there any areas where the broker’s performance has exceeded expectations (creativity in finding coverage, responsiveness to your needs, understanding of your sector of the nonprofit market)?
  • Are there areas where the broker’s performance fell short of your expectations (professionalism, access to markets, meeting deadlines)?

If Yes

  • Are the broker’s shortcomings in areas that you valued as essential or critical reasons for selecting the person as your broker?
  • Have you kept the broker informed of your disappointment and given the broker time to make adjustments in his/her performance?