How many books of business could flourish with a renewed investment in service?

Executive Summary

When a diversification strategy results in too much expense for a carrier, an often-overlooked option is to transfer the service side of the book to a specialist while retaining the paper and claims-paying capital. Here, Arrowhead General Agency's Tom Kussurelis explains the benefits of "lift-outs."

We see neglected or underappreciated books all the time. A carrier will abandon a book with a bright future because it loses money on the expense side, even though loss experience has been positive and the policies themselves are largely profitable. Why? Often it’s because the carrier lacks the people and systems to service those customers efficiently and cost-effectively.

Defy Disruption

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