Clearance and Broker of Record Procedures

Snap polls reflect questions posed by members of the Celent Executive Panel, a group of C level executives in the insurance industry. This insurer is looking for information about how other insurers are handling the clearance process. They’re trying to assess the level of granularity that carriers use and determine whether the processes provided by the core system are sufficient.

This deck provides a summary of the responses to a Snap Poll conducted April 24– May 1, 2024. Questions for a snap poll come from one of the other members of the panel. The snap poll was fielded to select members of the Celent Executive Panel, a group of C level executives in the insurance industry. 8 Insurers responded to this survey over the course of 7 days.

If you are an insurer and are interested in participating and receiving these snap polls, please email kcarnahan@celent.com to verify eligibility.

The question that was posed was:

Background:

The insurer is looking for information about how other insurers are handling the clearance process. They’re trying to assess the level of granularity that carriers use and determine whether the processes provided by the core system are sufficient. They have their own processes today but are considering moving to those built into their core system in order to reduce the level of configuration.

Questions:

Do you have a clearance process to determine who the Broker of Record is?

• No – all submissions are quoted for all agents
• Yes -first submission received is the broker of record
• Yes -the broker we think will do the best job is the broker of record
• Other

How does your clearance system address agents that are blocking the market? e.g. you know the agent isn’t going to get the account or place it with you – but they’ve submitted it first.

Once a clearance problem is identified do you use the standard process described below or something different?

• Both agents are told that there are multiple submissions. They have ten business days to get a letter from the insured stating which agent the insured wishes to work with as their broker/agent of record.

What data elements do you use to clear a submission to determine if the account already exists in your system?

• Name of insured (or business)
• Address
• Effective date
• Phone number
• SSN or Tax ID
• Other – please describe

Were these data elements that were standard with your core system?Or did you customize the data elements you use?

Is the clearance process part of your policy admin system or a separate module? If separate is it packaged or home grown?

What % of your submission have a clearance issue?