What are benefits of having an agency E&O audit?
There are many benefits from having an approved agency E&O audit. Most importantly an agency E&O audit brings an independent eye to reviewing your agency’s operations which can help reduce E&O exposures, improve customer service, increase sales opportunities, establish strong agency procedures, and create a culture of E&O risk management awareness with agency staff. In addition, the audit can save you significant money off your annual E&O premium with a 10% audit discount good for 5 years.
What do you have to do to get the 10% audit discount applied?
To get the five-year 10% audit credit policyholders must have an agency E&O audit performed by a Swiss Re Corporate Solutions approved auditor and implement the recommendations included in the final report.
Can anyone perform an E&O audit on my agency to get the 10% agency audit discount?
To receive the 10% agency audit discount the audit must be performed by a Swiss Re approved auditor. Here is the list of approved auditors
Where can I find a list of auditors approved by Swiss Re Corporate Solutions?
A list of Swiss Re approved auditors is available at www.iiaba.net/eohappens under the “Prevention Tools” tab. You can also contact your Big ‘I’ state association directly for information. Your state association may have an established relationship with an approved auditor as a member benefit.
If I have received the 10% Audit Credit and I have a claim, will I lose the credit?
No. The audit credit applied for voluntary agency reviews will apply for the five years regardless of your subsequent claims history.
What if I am required to have an audit for underwriting reasons by Swiss Re; will I still receive the credit?
Unfortunately, no. If an audit is required by Swiss Re in order for you to maintain your policy with them, the 10% audit credit is not allowed.
How much does an agency E&O audit cost?
The cost of an audit is going to vary based on agency staff size, number of locations, and the amount of time to review your agency operation. Every approved auditor has established their own pricing model to charge for their time. Contacting the approved auditors directly is the best way to determine the exact price for your agency. In most instances, the 5 year premium savings more than pays for the cost of the audit.
How long does an agency E&O audit take?
The length of time for an approved auditor to review your agency depends on the agency staff size and number of locations. Once the approved auditor has a basic understanding about the agency operation, they can provide you with their estimated timeframe.
In general, describe the process for having an agency E&O audit performed?
Once you have selected an approved auditor, you will coordinate a time for them to visit your office. The auditor will ask you to provide some information about the agency in advance of their visit. The onsite audit process generally begins with a meeting of the agency’s principal(s) and management for an overview of the agency’s operation. Then employees are interviewed by department. The agency’s operational workflows are reviewed including customer file maintenance, document management, file documentation, diary system, and template customer correspondence used, such as form letters, checklists and proposals. Finally, there will be a wrap up meeting to share initial findings and to answer any questions that you may have. The agency usually receives an operational improvement report in about a month. The auditor will follow-up with you as you implement recommended improvements to the operation.
What will I receive after my agency E&O audit?
Your agency will receive an operational improvement report recapping what was reviewed at the agency along with a summary of urgent, critical, and long-term improvements. The report will outline the steps required to improve the agency operation including suggested responsible party and completion date.
Is having an agency E&O audit scary?
For employees, participating in an E&O audit is a little like getting a shot at the doctor – you’re nervous prior to the shot an then you have it, realize it wasn’t that bad, and feel much better afterwards. An audit is way for everyone in the agency to contribute to improving the operation. It’s not scary and has many benefits.
What happens after 5 years? Does the agency lose the credit?
Yes, but you can have a new audit performed before the expiration of the 5 years and if you implement the auditor's recommendations, the 10% audit credit will continue to be applied. In many instances, if your agency has been maintaining the procedures and operations from the initial audit, the subsequent audit may not discover any deficiencies. And even if there are, they may be minimal.
Does my E&O carrier see a copy of the audit report?
For voluntary agency E&O audits, approved auditors provide the agency with a copy of the audit report. They will not share the results of the audit with Swiss Re unless asked by the customer. It is the choice of the agency whether to share the audit report with Swiss Re, however, the 10% audit discount will not be applied to your policy at renewal until the audit report, along with verification that recommendations were implemented, is provided.