Which trigger might indicate the need to review an agency's book of business?

A review of an agency's book of business is often precipitated by a poor loss history for an agent. A poor loss history signifies that an agent may be writing policies that lead to frequent or significant claims, which can create financial risks for the agency and its insurance partners. This could indicate issues with underwriting practices, the types of risks being accepted, or the overall effectiveness of the agent’s business practices.

Addressing a poor loss history is crucial for maintaining the agency's profitability and reputation. A thorough review can help identify trends or specific areas for improvement, allowing the agency to adjust its strategies to mitigate further losses, retrain agents, or reevaluate the types of coverage being offered.

In contrast, a high retention ratio and meeting production goals typically suggest a healthy book of business, while an agent with exceptional loss history may be exceeding expectations in a positive way, indicating successful underwriting or customer service practices. These scenarios would generally not trigger a need for review but rather reinforce the agency's current strategies.