Gilchrist Standard is a ratings agency that allows insurance brokers to benchmark themselves against peers and an industry 'ideal'. It helps them better understand the suitability of their operation and to quickly identify and mitigate potential risks.
Are ‘other insurers’ the elephant in the room?
Any firm completing the Gilchrist Standard process is asked to submit details of the top five insurers that they work with and the ‘share of wallet’ that each receives. This is a very important question as it reflects upon regulatory practices, product spread and risk. Once a firm has listed the top five insurers they work with and the percentage of business placed with the insurer, the remainder is grouped as ‘other insurers’.
What has amazed the team at Gilchrist Standard is how much GWP sits in the ‘other’ category, not being placed with firm’s top five insurers.
Further exploration reveals that there are a multitude of reasons for this, but typically it is because of historical placements, insurers failing to respond and hard to place business.
What is clear is that there is a vast amount of business available for consolidation, should an insurer and a broker have the means to identify suitable opportunities and start the conversation. That is where Gilchrist Standard comes in…
Firms who complete the Gilchrist Standard process and receive a rating are entered into the stakeholder search engine. This is used by leading insurers, who can search for commercial opportunities based on the share of wallet they currently enjoy, speciality and the overall level of GWP the firm has. Insurers can also search for firms that meet a minimum Gilchrist Standard rating, so with every major insurer chasing the same thing, better quality GWP and more of it, Gilchrist Standard is well placed to help both insurers and brokers prosper.