 Different Strokes For Different Folks.....Flexibility's The Key By Robert L. Wasserman, CPCU |
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A loss control firm can have just a few or many clients but the one sure thing is that each will have its own likes, dislikes and needs vis-a-vis inspection formats. One customer may want lengthy, comprehensive reports, another less detailed ones and yet another just a quick one-page checklist affair with no narrative. Some may want a lot of photos, others, none; some insist on diagrams, others don't.
Why, you might ask, wouldn't a client want the very best and most comprehensive information available? The answer is simple: different needs, goals, and pocketbooks. Let's face it, inspection and audit costs are a direct function of time....the more time spent in gathering information, making observations and compiling recommendations, the higher the cost to the client. With this in mind, customers have to balance the usefulness of the information gathered with its cost....the old "cost-benefit" exercise.
Ideally, this thought process should take place within the context of the type(s) of risk(s) being underwritten: e.g., are we talking about a property/liability program on large resorts or one on small convenience stores? Are there multifarious and complex exposures or simple and direct ones? Lastly, what are the economics involved? Are loss control costs being passed along to either the broker or the insured or is the carrier bearing the burden? Is the carrier delegating underwriting and loss control functions to an intermediary? What are the intermediary's priorities?
Ultimately, the type of report generated and its associated cost will be determined by a hard look at all of the above by those charged with underwriting results. It usually follows that those whose fortunes rise or fall with loss ratios are more interested in quality loss control....that's just a hard fact of insurance life, folks.
If a loss control firm is asked to provide very general or skimpy reports, they may send out what they feel to be "inferior" work to some customers. I submit that, AS LONG AS THE REPORT FORMAT HAS BEEN ACCEPTED BY THE CLIENT, THE VENDOR HAS NOTHING TO BE CONCERNED ABOUT. After all, we are in a service business and in a service business, the customer calls the shots! Sure, we can and should, advise, suggest, even cajole...but the final determination of what the clients needs (or wants) lies with the client. Period.
The point is, loss control firms must be flexible and creative in their report methodology, keeping in mind that their clients' priorities and needs will ultimately fashion the content, quality and cost of the surveys.
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