We’re taking a look back plus a sneak peek at what’s coming
- 2017: QBE handed over management of their block of small commercial insurance to Arrowhead to be the program administrator. Arrowhead Core Commercial was born.
- 2020: Core Commercial will nearly triple new business premium, when compared to 2016 prior to the move to Arrowhead.
- See what we’ve accomplished in the past three years; plus, preview what’s ahead.
This month we’re celebrating Core Commercial’s third anniversary, looking back at all that’s been accomplished, plus providing our producers a sneak peek at what’s on the horizon.
How it all started
QBE had been writing small commercial policies under $100,000, but realized they needed more innovation and distribution capabilities to better compete in the marketplace. Facing a decision about the future of its small commercial book of business, QBE met with Arrowhead to consider handing over the block of business to Arrowhead as program administrator. In July 2017, Arrowhead was named exclusive program manager for their small commercial business; many QBE employees transitioned to the Arrowhead team. And Core Commercial was born.
“QBE wanted to profitably grow this sector of business in the U.S. but needed updated products, a broader geographic distribution and a more competitive expense structure,” explained Walter Grote, president of Core Commercial. “They also needed a program administrator with the ability to make a significant investment in technology to meet tomorrow’s demands plus a specialized team whose key focus is to grow this business, offering more value to agents and insureds.”
In 18 months, eight lines of business were up and running on a brand-new platform. Forms were filed in all 50 states, allowing producers to quote, submit new business and service policies on Arrowhead Exchange.
“In the first 30 months, we converted tens of thousands of policies onto our system,” he added. “It was a herculean effort – and we were successful.”
What’s been happening lately
We’ve added new industry verticals such as fabricare. We’ve created a service center for busy producers to manage their renewals and mid-term needs, so they can spend more time prospecting and selling. And we’ve initiated new technologies for our underwriters, so that our quote/bind/issue process is faster and more accurate than ever before.
“This year, we’re well on our way to tripling our new business premium, compared to 2016 before the program moved to Arrowhead,” Grote said.
Grote added that Core Commercial is winning due to
- Our top tier commissions and profit sharing/ growth plans, including BOP commissions of 18 percent on new and renewal business.
- Our responsiveness to producers and their clients, such as our agents council.
- Our product offering more closely matches the need of the marketplace, along with competitive rates.
- The program is now available in all 50 states. Grote says under QBE’s management, the program was only offered in only 28 states.
- We’ve expanded appetite, with a much broader reach. We’ve also added a real-time digital appetite guide that’s integrated on our product page.
- Producers now have broader access to more Arrowhead programs such as Automotive Aftermarket.
Grote also credited our organization for being “nimble and flat,” allowing us to pivot more quickly to market demands. He cites our pandemic response as an example. “We were one of the first to offer help to our policyholders, even before many states mandated these reliefs” such as premium payment leniency, the ability to modify exposures or coverage mid-term and extending hired and non-owned coverage for restaurants who suddenly found themselves in the delivery business.
What’s ahead for Core Commercial?
Grote listed a number of upcoming enhancements, most of which focus on making it easier to do business with us, such as our straight-through processing platform (known as ALEX), API technology upgrades and other Insurtech advances. The Core Commercial team is also committed to growing more industry verticals, with a near-term, greater focus on restaurants. Contractors is another segment we’re looking to grow, particularly niche contractors, where we can bring additional value. A third segment is independent booksellers (more to come later this year on this segment).
“Our marketplace is changing rapidly – and has increased its velocity of changes even faster in 2020,” Grote said. “We’re committed to being responsive to our producers’ questions and needs. And we’re committed to streamline our processes so they can quote/bind and get back out the door faster. Great things are on the way.”