"Technology is a tool, not the solution"

"The biggest thing is remaining flexible and hearing that broker out because they're the expert"

"Technology is a tool, not the solution"

Insurance News

By Chris Davis

As the demand for specialty insurance grows, brokers need access to products that address unique and complex risks.

Special Risk Insurance Managers (SRIM) is navigating the evolving MGA landscape with a focus on tailored solutions, broker partnerships, and flexibility, as Michael Caron (pictured) told Insurance Business.

"One of the initiatives we're doing is broadening our portals," said Caron, SRIM chief commercial officer. "We have multiple portals right now for brokers to be able to access non-standard products, and we do tend to modify them as well based on individual broker needs for certain costs of business or market changes."

However, he is quick to point out that technology is only part of the equation. "Everyone sees the value of technology as a tool, but it's just that – it's a tool. It's not a solution for the entirety of the market, especially as you get more specialized, more non-standard. That tailored solution doesn't lend well to a platform that's ultimately designed for fairly commoditized service."

Instead of relying solely on automation, SRIM is expanding its program-based approach, working closely with brokers to build custom solutions. Caron explained that they call them programs.

“Working with our broker partners, they're coming to us with a need, a portfolio, or a growing small portfolio – and they're saying, 'Our needs aren't being met right now,' or, 'The market isn't able to meet the needs of our clients.'"

The key, he told IB, is flexibility.

“The biggest thing is remaining flexible and hearing that broker out because they're the expert. They have the knowledge of that client, the needs of the client, the exposures of the client.”

And SRIM is constantly rolling out new products based on broker feedback. Because their background is actually from a complex GL placement, some of the solutions they’re rolling out are more the beginning products of most MGAs.

“[However], it's just based on the needs of a broker expressing that they need some non-standard homeowner offering,” Caron said. “To me, that is not a terribly unique offering in the market, but our brokers are expressing a need, so we're coming over."

Caron emphasized that broker feedback drives product development – the biggest thing for him and his team specifically on the business development side is keeping their ears open to what brokers are saying.

“When they're giving us feedback – that there's provincially or municipality changes for contract requirements – quite often, contractors for environmental coverage requirements, even where the exposure is fairly innocuous, it's non-intrusive work,” he said. “This is a new thing. It's a new development where we need to respond quickly, create a product so that those brokers can access what is, you know, not readily available in the market or priced as such."

And while it all may sound super tech-reliant, Caron was quick to point out that the human touch here is absolutely essential. While SRIM has a very sophisticated internal system, that’s not the be-all and end-all of their client process. With 400 to 700 submissions daily, a triage team filters out inapplicable risks before forwarding the right ones to underwriters. While automation could further streamline this, Caron warned against over-reliance on technology.

“We've looked at automating it further and have been at companies that have used certain tools to pull out keywords, and I've just seen it strain the relationship because it might identify a keyword like 'daycare.' Say, 'Oh, sorry, declined.' But maybe the broker says, 'I know this says daycare on the building and the photo, but actually that’s an old business.' So now you've rejected something you shouldn’t have."

Rather than strict adherence to digital workflows, SRIM encourages direct relationships between brokers and underwriters.

“I love when the process isn't followed," Caron told IB. "As much as I love that submission system and the team and the data we get from it, I love it when our underwriters, when the brokers reach out directly [and bypass] it, give them a call, drop an email saying, 'Hey, here's a risk. I know you like writing this. I've worked with you for a year. Want another one?' Bypasses the system, and we fully encourage it, because at the end of the day, it's all about relationships."

And, when it comes to market growth, SRIM has seen varying demand across regions and industries.

"It really does change for us," Caron said. "Because we do niche lines of business, the answer is going to be different from aviation than it would be, you know, inland marine, then it would be, you know, contracting.

“Generally speaking, what we're experiencing is steady metered growth in BC, which is our traditional home base. Prairie provinces, in particular Alberta, are seeing an upward trajectory, along with Ontario. Ontario is an area where, you know, the economy is fairly good from a Canadian standard, but also from specialist sampling. Our market penetration hasn't been as robust in the area.”

Finally, for brokers looking to maximize their success in the specialty market, Caron revealed that partnerships and long-term thinking are the cornerstone of their innovation – something they’re only looking to build upon in 2025 and beyond.

"We have a range of partners, as we do nationally, outside of Quebec – and we’ve been in the market since 1986. On the small side, there might be limited opportunities. So we see some brokers who are genuinely small, mom-and-pop shops. It's a one-location, rural area and they send us three risks a year. And I'm ecstatic – we all are – when we can help on those three risks a year."

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