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At the very least, risk managers who follow this advice are likely to make their property renewals a little less traumatic:

*For starters, Lexington Insurance Co.'s David Bresnahan said it makes sense for the insured to differentiate their risk from others. "Brokers and insureds who we have the best relationships with are those that have the most information on the risk," he said.

*Understanding the importance of long-term relationships and how they matter. If insureds stick with an underwriter long enough to chalk up good years as well as loss-prone catastrophe years, insureds are likely to get a better deal, said Bresnahan.

* Valerie Martin, a vice president with wholesale broker Partners Specialty Group in Kansas City, Mo. said thatthe best way for insureds to save money on their property insurance is basic "Insurance 101 -- buy a higher deductible."As underwritersseek higherwind/hail deductibles in an effort to more effectively manage their catastrophe exposures,purchasing ahigher wind/hail deductible -- 5 percent or moreof the insured value -- will give your broker more room to negotiate the best terms with carriers.

*In addition, Martin said, as the market tightens and prices increase, the natural response istoemploy more brokers as a means to achieve more competitive pricing. The rush to find more brokers isn't always advisable, however.

When multiple brokers are involved,"everyone ends up tripping over one another," she said. As a result, it's more difficult for markets to put together the most competitive programs for insureds, particularly when negotiating the purchase of larger limits.

--Janet Aschkenasy

October 1, 2012

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