(14) How the current 'Insurance Universe' began! An example showing also how the seed of unreasoning was being sown in its traditional "Business Model".

From: xxxxxxxxxx
Sent: xxxxxxx x xxxxx 1:04 PM
To: 'xxxxx.xxxxx@xxxxxx.xxx'
Cc: 'xxxxxxx.xxxxxx@xxxxxx.xxx'
Subject: FW: xxx7xx9xx - xxxx.xxxxxxxx x/x xxxxxx xxxxxx

Hi, xxxxx,

xxxx handles this client. She will get the many information you asked for, if the client buys! Also, the client will probably just pick and choose the coverage he wants to buy, and thereby hopefully reduce on the premium you quoted. We might have to bother you for a soft credit check later, so as to see if the price can be further reduced.

In reviewing the file, I noticed that he had paid only about $900 to $1,200 before, just for the 5M Third Party Liability.

Please allow me to follow your line of U/W thinking on this file a bit. Seriously, don't you think it is an overkill on this little 5,000 physical TIV handyman account? Including all the coverage you indicated, like 50,000 Profit Form, actual loss sustained basis, and 5M Third Party Liability, that his landlord asked for, the total bottomline premium you quoted comes to around $2,200!

He has only 5,000 physical business assets. That means, grossly, it is about 20% rate on tools! And since he is an xxxxxxxx handyman, doing xxxxxx xxxx graphics, he does not have too much of tools, so just a xxxx xxxxr, he can work anywhere, and based on his years of experience, he never had any claim before either.

I know you may have to follow your U/W guidelines, but please kindly tell the authority who designed and maintain the said "guidelines" to think of the kind of work you and us have to go through in order to come to this point, which might not even sell, due to the price quoted, because it is a big difference than before, and because his little incomes or receipts just cannot afford! And besides, his work is very seasonal.

Chances are, he might just go to another broker and get it placed elsewhere, easy! Especially with those brokers who have "a pen" and "program" for small contractors! Even worse, if the "program" were with your company! That means, writing the same thing, even with better coverage, for less! Isn't insurance business a weird business?

And then, at the end, it will be a waste of time and efforts, for you and for us! And we simply lost a long term client!

Perhaps, all and all, that's what we learnt from our past expereince! No wonder, the brokers market share is so polarised. Not that we do not have clients!

Anyway, we will see how it goes.

I just want to cc xxxxxxx to share thoughts together.


xxxxxxx xxx

From: xxxxx.xxxxx [mailto:xxxxx.xxxxx@xxxxxx.xxx]
Sent: xxxxxxx xx xx 3:42 PM
To: xxxxxxxxxx
Subject: RE: xxxxxxxxx - xxxx xxxxxxxx x/x xxxxxxx xxxxxx
Good afternoon xxxx,

Thank you for the additional information. Please see the attached quote for your review. Please note that this quote is subject to the following:

- Subcontractors, if any, to provide proof of insurance
- No hot work
- No off premises welding
- No Masonry, Sewers, drains, ceiling work
- Confirmation no losses

This quote is eligible for a soft credit check. As you know a soft check helps us accurately price the risk and provide the best quote for your client. What we need for a soft credit check (no impact on customer's credit) is confirmation that you have received explicit consent from your customer and the following information:

- First and last name of majority shareholder and percentage of ownership (Must be at least 30%)
- Date of birth
- Home address
- Number of Years Residing at Home Address (if less than 1 year, please also provide the previous home address)

Attached is a customer information sheet with further information as to Credit and please do not hesitate to call should you have any questions or concerns.

I look forward to hearing from you

Kindest Regards,

xxxxx xxxxx
xxxxxxxxxx xxxxx xxxxxxxxxx
xxxxxx xxxxxxxxxx
xxx xxxx xxxxxxxx xxxxxx, xxxxxxxxx xx xxx xxx

Phone: xxx-xxx-xxxx xxx.xxxxx
Toll Free: x-xxx-xxx-xxxx
Fax: xxx-xxx-xxxx

From: xxxxxxxxx xxxx@xxxxxxxxxxx.xxx
Sent: xxxxxxx xx xx 1:04 PM
To: xxxxx.xxxxx xxxxx.xxxxx@xxxxxx.xxx
Subject: xxxxxxxxxxxx - xxxx xxxxxxxx x/x xxxxxx xxxxxx

Hi xxxxx,


Below is the answer from the client:

The owner , xxxxxx Group (through xxxxx Holdings) has recently decided to keep the building as an artist's' studio space and is upgrading for over a year , including re-doing all the plumbing, washrooms, overhead lighting. Sprinklers have been in place for many years, unlike other xxxx xxx studio buildings.
-I do not do any work involving heat- that is not allowed on the wood floors.
- I just checked with the manager and new roof was installed 5 years ago
-there is a janitorial crew in the building 5 nights a week and there are 3 building staff with office , one of whom has been the manager for over 20 years.
- there is a common dumpster outside the building in the loading bay. I have my own bins, though I do not create wood-dust, so I don't have sawdust exhaust, though others in the building who do woodwork are required to.

We await your quote asap. Thanks,

xxxx xxx

From: xxxxx xxxxx [mailto:xxxxx.xxxxx@xxxxxx.xxx]
Sent: xxxxxxx xx xx 11:46 AM
To: xxxxxxxxx
Subject: RE: xxxxxxxx - xxxx xxxxxxxx x/x xxxxxx xxxxxx
Good morning xxxxxx,

Thank you for your email. I appreciate that you understand where I am coming from on this one, and that you are of like mind. I am currently reviewing the submission again for consideration, and I noted that the building is an older one. Could you please provide some additional information for review:

- Please provide year(s) of the updates for plumbing, electrical, heating, and roofing
- Please also confirm if these were full or partial updates
- Does the applicant do any heat processing for their operations?
- Please provide detail on housekeeping
- Does the applicant have a dust collection bin?

I look forward to hearing from you

Kindest Regards,

xxxxx xxxxx

From: xxxxxxxxx
Sent: xxxxxx xx xx 12:20 PM
To: 'xxxxx xxxxx'
Cc: 'xxxxxxx xxxxxx'
Subject: RE: xxxxxxxxx - xxxx xxxxxxxx x/x xxxxxx xxxxxx

Hi, xxxxx,

This client has been with your company for about 10 years. Always the same. Cancelled when no work, and reinstate when there is work. And no claim, no loss ever.

We understand your U/W position.

Before we presented the submission, this time we already explained to the client that this kind of "trend" cannot be continued, not just because of cost wise, but insurance wise too.

And he agreed. That's why he decided to buy some contents also, as per application. That will ensure the continuation of the insurance.

We would suggest to reinstate with additional content coverage, and if he does the same thing, we will not entertain his request next time.

We look forward to your support and advice.


xxxxxxx xxx

From: xxxxx xxxxx [mailto:xxxxx.xxxxx@xxxxxx.xxx]
Sent: xxxxxxx xx xx 12:06 PM
To: xxxxxxxxxx
Subject: xxxxxxxxx - xxxx xxxxxxx x/x xxxxxx xxxxxx
Good afternoon xxxx,

Thank you for your submission. I have reviewed the application and have noted that the client had cancelled their existing policy earlier this year due to not having an ongoing project. Due to their operations and the completed operations exposure, this practice is understandably discouraged as it can create a gap in coverage. As we have no guarantee this will not be the continuing trend, we are unable to accommodate this submission and a quote cannot be provided at this time. I look forward to working with you on the next submission. If you have any further questions, please do not hesitate to ask

Kindest Regards,

xxxxx xxxxx

Sent: xxxxxx x,xxxx 12:09 PM
To: 'xxx.xxx@xxxxxx.xxx'
Cc: 'xxxxxxx xxxxxx'
Subject: xxxx xxxxxxxx x/x xxxxxxxxxxxx
Importance: High

Hi there,

Please quote asap per attached application. Client would like to have coverage wef xx/xx/xxxx. Thanks,

xxxx xxx