18 Jul The Quality Management Program Award
Without question, every agency I am honored to work with and virtually every agency in the E&O Plus program is looking to enhance its E&O culture. That is certainly one of the things that makes the E&O Plus program so great! The agency’s commitment to excellence comes with a solid level of accountability among the staff, not only to the agency but to their colleagues and clients. One side note based on observation in my close to 10 years of working with the program: many of the E&O Plus agencies have more than just a commitment to excellence; they have an expectation of excellence, and clearly, each of the staff is well aware of that expectation. Talk about a strong E&O culture – WOW!
E&O Plus honors the agencies that achieve that desired level of excellence with an annual award – the Quality Management Program Award. Approximately half of the agencies in the program have earned this designation.
Why do I mention this? I have seen numerous examples of how achieving the award has been a major goal the agency has focused on. It has become sort of “the carrot” that gets the staff energized and committed. Although I best not mention any specific names (they know who they are), the strides these agencies made to achieve this award are spectacular. They also know that while it takes a tremendous effort and achievement to get the award, it takes an equal level of effort and achievement to keep it (the QMP award is awarded each year). The achievement of the QMP award is a major goal, and those agencies are so much better as a result of doing what is necessary to get it and keep it. I could not be prouder of them.
What does it take to win the award?
As you know, the E&O Plus program (and the role of the reviewers) is heavily focused on achieving compliance with the 22 Key Components. These are the Best Practices that have historically shown to be major drivers of E&O Loss Prevention. In addition to compliance with the Key Components, the agencies must achieve the following:
- Consistent use of the E&O Plus trilogy for all client service
- Annual exposure analysis
- Standard proposal
- Written declinations or changes to coverage and form
- An acceptable loss ratio (determined annually) whose parameters are established by Swiss Re Corporate Solutions Capacity Insurance Corporation and the Underwriting Committee of the PAR Board of Directors based on entire program results: This is key to generating a profit for the program, which then benefits those agencies.
- Integration of branch office operations into the overall corporate operation: With many of the E&O Plus agencies either making acquisitions or opening branch offices, those new agencies/branch offices must be aware of and embrace the overall corporate office’s E&O culture (and the Key Components). Newly acquired offices have two years from the close of the acquisition to get into compliance.
- Timely completion of management reports to E&O Plus personnel: This shows a commitment to the program and to addressing the suggestions made by the reviewer at the last annual agency review.
- Timely completion of the pre-review checklist: This provides quality information before the review.
- Annual attendance at the QMP seminar: This seminar (to be held in San Diego in September) has become an event providing solid information and great networking opportunities. Undoubtedly, the seminar gets solid reviews each year as everyone leaves energized with many ideas for their agency to consider.
So to the great new agencies that have joined the E&O Plus program over the last couple of years and some veteran agencies that have been part of the program, give some serious consideration to achieving the goal of winning the QMP award moving forward. You will be a better agency for it.