The Risk Managers begin working with their brokers as early as possible for next years’ coverage program. Some start working on it as early as 6-8 months in advance for the next year’s coverage program.
If the carrier at the very top insists on a higher price, then the broker has two options namely- Firstly, he can either try and convince the underlying participants to pay te increased stating the various advantages the top carrier offers. Secondly, he can try to convince the top carrier to reduce his price as most of the underlying participants are not agreeing for the elevated price. Since both the business parties want to do business at the end of the day, either of them would definitely agree to the new terms and conditions.
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