Over 300 years ago in 1686, some of the first documented product development was put into practice in Lloyd’s Coffee House in London. From this common meeting place for sailors, merchants and shipowners, Lloyd’s of London has grown into the insurance market we know today. Back then, the simple written “marine product” provided much needed protection for valuable ships and cargo, with limited development of the insurance product that provided coverage to the ships that crossed the seas.
Now, in 2019, here at Lighthouse we focus on two crucial elements of product development: annual rate review and product enhancement analysis of our current products.
To explain further, annual rate reviews of all lines of business are necessary for a successful property program. It is essential to complete a comprehensive review of premium growth, loss activity, property exposure growth, reinsurance cost and expense development. These key factors allow product analysts to form recommendations and changes that will enhance the specific program’s overall performance. Loss activity, profitability and earned premium are key analytical components. Based on positive and negative developments, appropriate changes are then recommended. At Lighthouse, once these tasks are completed, a final review is conducted with the executive team. Upon final review, the necessary filings are prepared and submitted to the appropriate Department of Insurance for approval.
Next, as lines of business age and different types of optional coverages emerge, product enhancements are reviewed and taken into consideration as add-ons to current coverages. Additionally, as other enhancements and changes are determined beneficial to current programs, appropriate research is completed, the necessary underwriting rules are developed and premiums are established. As a final step, regulatory filings are then submitted to the Department of Insurance.
At Lighthouse, we consistently seek enhancements to improve current coverage options and provide other, new and desirable options to our policyholders. For example, Lighthouse will soon implement a private flood endorsement backed by Swiss Re.
Whether we are conducting an annual rate review or researching opportunities for product enhancements, the Lighthouse Product Team aims to enhance coverage options and provide insurance protection to our policyholders. It’s important to note that the data we analyze and trends we study determine the necessary changes to provide financial stability for the company, which provides financial security to our valued policyholders and agents.
As with the first Lloyd’s marine policy, Lighthouse provides peace of mind to the families that we insure.
Written by Sidney Bright, Director of Product