Some Insurance Problems Require More Than Experience…

They Require An Expert – Richard W. Dorman

How I Help Insurance Companies and Managing General Agents Manage Greater Profitability

Greater profits are possible for virtually every insurance company and MGA.

I have shown clients how to increase profitability by asking probing questions, finding hidden information, discovering new markets and exploring previously undiscovered niches within their present markets.

In my many years as an insurance consultant, I have helped hundreds of insurance companies and MGA’s of all sizes in both personal and commercial lines view their business in a new light and given them a broad range of practical, profit-producing solutions.

As a testament to my results, more than half of all of my clients have requested my services for subsequent projects.

Answers, Not More Information

A central part of my philosophy is that most companies already have much of the information they need to increase their profitability. Most of the practical results I have produced for my clients have come from providing insight into how to find the information, what it means, and based on that information, which solutions are most likely to work.

I start by asking such questions as: What are the numbers really telling you? Is there a trend, or perhaps a warning signal? In some cases, my questions go more to the very heart of how a company has organized its pricing, rate-making, product management and marketing structures.

Once the problem is identified, I bring unique insights to bear on it. As author of the Best’s Review article “Underwriting Is Dead. Long Live Pricing,” I argue that, if done properly, “any insurer… can insure anything and still make a profit.”

Who is Richard W. Dorman

Professional Experience. I personally developed many of my successful techniques during my nine years as Vice President of Marketing for Progressive Insurance, one of the country’s best known and respected property and casualty insurance companies. While there, I managed a product line from eighth in the industry to first in less than four years, with compounded growth over 30% and a combined ratio of 90%.

A large part of this success was due to the state-of-the-art management information system and pricing techniques that I developed and perfected. I can achieve similar results for your company.

I speak frequently to industry groups like PCI, NAPSLO, PIMA, AAIS and NAMIC on topics such as niche marketing, product management, pricing and data development. My credentials and experience have also earned me a listing in “Who’s Who In Insurance.”

Education. I earned my Bachelor of Science in Management from the Sloan School at the Massachusetts Institute of Technology, and my Master of Business Administration in Marketing from the Harvard Business School.

Services to Insurance Companies and MGA’s

I’ve helped my clients achieve significant results by applying a unique perspective in several key areas:

Pricing and Rate-Making

I am often called on to review a company’s current pricing and rate making structures and show them how to make a profit in virtually anything they choose to underwrite. This frequently requires developing new or improved pricing techniques, performing actual product pricing and training your staff in these skills.

For example, when a specialty auto insurer needed to revise their rating program, I helped them obtain internal statistics and review competitive offerings. This analysis showed that their program needed to be modernized with loss and competitive-based relativities. After a complete redesign of the program and rating material, the new program significantly increased their profitability.

Underwriting

I use quantitative and business analysis to identify the most profitable market segments and niches as well as the unprofitable portions that need to be avoided or improved.

For instance, a large national multi-line company asked me to review their general liability program. Although they felt the available data was inadequate, I was able to design a complete data retrieval system within their budget which allowed them to obtain the information they needed, organize it into appropriate rating groups, identify the most profitable niches, and revise their marketing to target these segments.

Marketing and Pricing Data

I develop systems to identify and capture the data needed for effective and profitable rate-making and marketing management.

That’s what I did for a Managing General Agent with a specialty personal lines product who had not recognized the capability they had to obtain premium and loss data within their system. I responded by developing the retrieval criteria and designed the output reports that enabled the MGA to identify their successful niches and target their marketing and pricing towards the most profitable segments.

Business Analysis

I analyze current operations, including management structure, marketing, sales, underwriting, pricing, and general operations, and recommend numerous ways companies can improve, modernize, and increase their profitability.

For example, I worked closely with a small single state multi-lines company that needed to update many of its business practices and systems. After reviewing their entire marketing, sales, underwriting and pricing methodology, I recommended numerous changes and improvements which they implemented, with immediate and profitable results.

New Market Review

I regularly help clients learn how to identify the most profitable new markets, where they’re located, and how to successfully break into them.

That’s what I did for a large New York-based company that wanted to enter additional personal lines markets. I started by completely reviewing the potential for pleasure boat business in their state, and finished by giving them a thoroughly researched business and marketing plan for successfully entering the market.

Auditing and Review

With many years of experience and insight gathered from companies of all types and sizes, I assist clients in reviewing prospective partners such as general agents, acquisitions and reinsurance customers.

I worked with a large national reinsurer that needed an objective and independent review of a potential customer. I visited the company, carefully reviewed their business and markets and talked with their agents. I then prepared a complete written review and audit of their business including recommendations for improvements and areas that required ongoing monitoring.

Business Information

I know the types of information a company needs to effectively manage the business, the products, marketing, sales and claims. I assist my clients in identifying and developing the areas they need to do the job well.

One of my clients, a Texas-based trucking insurer, suffered from a lack of information because it had never implemented a management information system. To immediately meet their needs for basic business information, I developed a database accessed via personal computers that provided most of their critical marketing and client information, allowing the company to quickly catch up with its competitors.

Product Management

My time-tested product management techniques can dramatically affect the bottom line for virtually any property and casualty insurance company. These techniques include developing a product management system for your company, designed to succeed in a rapidly changing market.

For example, a midwestern company wanted to take advantage of the benefits of a product management system. Working with their President, I identified the goals they wanted to achieve, set up the product management organization, wrote the job descriptions, and even assisted in the hiring and training of the staff in the needed skills.

How My Experience Can Help You

My techniques are applicable to any Property and Casualty Insurance company or Managing General Agency for both personal and commercial lines. The key is determining what data is available, how to get it or improve it, what the information says, and how the company should use it.

I often find information that you may have ignored and highlight the importance of certain information you currently have, but aren’t utilizing.

And as a general insurance company consultant, I can help you re-design current management structures for greater results by looking at your business with a fresh eye and a wider perspective. Too often, companies do things the same way year after year. I can help you modernize your approach with my proven skills and ideas.

Working With Me is Easy

My services are generally time-based, and billed on a per-day basis plus expenses. Occasionally, a task can be priced and billed on a project basis. I do not require any long-term commitments, retainers, or other restrictive arrangements. You may hire me for the time you need, when you need it, with barely a dent in your overhead. I work quickly and efficiently, and often produce sufficient results in the first day to justify the cost of all my services.

I’ve Made Millions for Insurance Companies and MGA’s Just Like Yours.

My unique marketing, product management, business analysis, market review and rate-making techniques have produced significant success in numerous property and casualty insurance companies and MGA’s.

What Clients Have Said

 

Your work in the areas of pricing, reserve analysis, data base development and product management have been of significant value in getting the company on the right track. You helped us get the pricing issues defined and under control faster than I thought it could be done.

Great American Insurance Companies

Richard Dorman analyzed our organizational structure and offered significant proposals conducive to more effective management. We’ve initiated a number of these proposals and have had significant success to date. I highly recommend him.

Nodak Mutual Insurance Company

Richard Dorman was the first person to bring clarity to our long-suspected but hard-to-confirm hunches about pricing and product development. Along the way he identified new growth opportunities as well as some weaknesses that had never been identified. We highly recommend his approach.

Hagerty Insurance

I have hired many consultants in my career, and seldom had one given me such high quality results.

Progressive Insurance Companies

Your suggestions for improving our operation were right on point, and we have already developed action plans in each of those areas to begin developing the information to lead us to a better conclusion. We are indebted to you for your participation in our success.

Vesta Insurance Group

We believe that we have obtained an excellent return on our investment in your services. You can count on our continued use of your services as long as you remain in your consulting practice.

Harleysville Insurance Group

Richard Dorman assisted us in creating a vision for our new organizational structure to best support a strong product management culture. Our business results over the last two years have been outstanding and are directly the results of this change. I highly recommend him.

International Catastrophe Insurance Managers

Over the years, I have worked with a number of consultants. I have no qualms telling you that you have been the best so far. In my opinion, your consulting strength lies in your ability to not only get quickly through the smoke and to the important strategic issues, but to then respond with some real world, practical answers.

MetLife Auto and Home

It’s difficult to find outside resources that can quickly assess a company’s most critical needs and provide solid recommendations for improving product line performance. In just two days, Rick understood our challenges and provided direct feedback and action steps we needed to implement positive change. His expertise and experience were invaluable to us.

Rockingham Group