Issues & Answers Special Advertising Section:
“We take seriously the idea of knowing and collaborating with the customer in a real partnership; fighting for the customer; and motivating capable employees to perform well while creating a business culture of excellence.”
Prime Insurance Co. is an excess and surplus lines specialty liability company. While many others in our industry seem to take solace—and make excuses—in repeating how challenging the last couple of years have been, we have accepted and met these challenges head-on and enjoyed record new levels of production and expansion. Our underwriting protocol follows simple but important guidelines, such as not competing with low pricing and exclusionary terms, but by providing the services that actually work in today’s heavy litigation environment, and ensuring that we create and maintain a close working relationship with our clients.How can Prime be profitable while insuring high-risk businesses that other companies won’t touch?
It isn’t anything magical. It is simply executing first-class business practices such as getting the little things right; knowing and collaborating with the customer in a real partnership; fighting for the customer and motivating capable employees to perform well; and creating a business culture of excellence and pride. Quality control and service is of the utmost importance and all business processes are executed in-house, including underwriting, policy issuance, risk management, legal work and claims adjudication. Prime provides “full contact” customer service. Clients receive regular visits and communications. Clients have 24/7 accessibility and support because bad things can happen at any time.
How is Prime different?
A major business differentiator is our willingness to fight for clients in court against plaintiffs’ attorneys, rather than quickly settle frivolous or exaggerated claims. We believe the industry inclination to settle even frivolous lawsuits has damaged the industry and the people and businesses who are insured. The rush to settle encourages frivolous lawsuits and higher settlement demands, resulting in a downward spiral in fairness and costing more in the long run. The industry is threatened by a tsunami of litigation that increases the cost of insurance and makes companies fearful of insuring high-risk activities. We will go to court and fight hard for clients who are in the right, even if it costs more than settling. Prime is not afraid of the legal system and is not afraid of spending money to win in court. Prime does not allow its clients to be taken advantage of. Prime reverses the pressure and tactics of the plaintiffs’ lawyers. It will cost them more to fight Prime.
Can you tell me how Prime is impacting the relationship between carrier, producer and insureds?
Prime’s significantly lower-than-average loss & LAE ratio is a result of the partnerships formed with policyholders during underwriting and risk management review. Case management is greatly enhanced through this partnership approach. We engage all stakeholders and demand complete transparency by all concerned. With this approach, we are changing the insurance world. The result is that, even though Prime insures categories and enterprises that engage in risky activities that other companies reject, we perform far above average. Prime’s unique ability to supply a stable market beyond the boundaries of other insurance carriers opens options for a larger book of business.