White paper for Cytora
By definition, the broker will not have the same level of deep expertise and nuanced understanding of a specific market as the underwriter. The broker’s product knowledge will never be as detailed, and it is all but impossible for brokers to have all the data points demanded by each of the insurers they approach, as each insurer has a different submission process and those data points change over time.
These are significant constraints. The inevitable consequence is that the amount of information brokers can practically include in a presentation that goes to multiple insurers is limited. From the underwriter perspective, this translates into data gaps that need to be filled if they are to understand the risk and underwrite it to the highest degree of comfort and security. In the subsequent back-and-forth to fill those gaps, efficiency is lost, and valuable underwriting resources are directed towards data gathering rather than data analysis.