Choose your underwriter wisely or your client will find another broker

[Auswide Insurance Brokers]

Auswide Insurance Brokers highlights the critical importance of selecting a reliable underwriter, warning that focusing solely on price can lead to significant risks for both brokers and their clients. When insurers undercharge or take on too many poor risks, they often face financial trouble and may be forced to close or go into "run off," leaving brokers scrambling to find new coverage and potentially losing client trust in the process.

Insurer Run Off Risks

An insurer in run off no longer renews policies or takes on new business, forcing clients to secure new, often less favourable, terms elsewhere. Brokers may spend valuable time remarketing these risks and handling dissatisfied clients, which impacts their reputation and business growth.

Warning Signs for Brokers

Auswide Insurance Brokers stresses that brokers should watch for red flags that suggest an underwriter may be at risk:

• Lack of selective risk management—accepting all risks undermines portfolio profitability.

• Underwriters with poor track records or those coming from recently closed insurers.

• Insurers focused on rapid market share growth, particularly via book rolls for broker commissions, at the expense of sustainable underwriting.

Consequences of Poor Underwriter Choice

If brokers recommend underwriters who later go into run off or handle claims poorly, clients are likely to seek out alternative brokers, leading to a loss of business and reputation—for both broker and insured clients.

Auswide's Commitment

Auswide Insurance Brokers prioritises working with established, reputable underwriters who are committed to sound risk selection and claims management. This approach ensures long-term policy stability, competitive premiums, and reliable claims service—the foundation of client trust and broker success.

Auswide Insurance Brokers encourages all industry professionals to be diligent in evaluating underwriter expertise, financial health, and risk practices, reminding them that wise underwriter selection is essential to safeguarding clients and maintaining strong broker-client relationships.