Selecting an Excess Insurer

Security. A company will need to be assured that the excess insurer will still be in existence when claims need to be paid. A.M. Best provides ratings for each insurance company with A+ being the highest category.
Service. A self-insurer will need to be assured that the excess insurer responds quickly, efficiently and responsibly to any claims so that it is not left having to fund them itself.
Competitive. A self-insurer will need to be assured that the excess insurer's prices are not out of line with the market or excessively high. The insurance broker or Third Party Administrator should provide alternative quotes at the beginning and at each renewal but unless there is a significant price differential and all other things being equal, changing insurer should be resisted. Insurers normally take into account prior loss experience and add a discount if the insured has been a loyal customer, moving to another insurer for a short-term gain can often turn out to be counter-productive.
Responsive. If a self-insurer's experience is good and a bank of premium with the insurer is developed, it will want to be assured that the excess insurer will take this into account in calculating future premiums in order that the company will benefit from reduced premiums.

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