Case study: When higher quality drives higher profits

A program that DBH Consulting designed and developed has helped dozens of insurance agencies reduce their errors and omissions — and raise their profits.

How do insurance organizations increase profits without necessarily acquiring new clients? One way is to minimize losses and offer premium customer service.

And that’s exactly what agencies and brokerages covered by Professional Agencies Reinsurance (PAR) Limited have accomplished. PAR provides premium protection from errors and omissions; a key component of its offering is a quality management program developed under the guidance of DBH Consulting.

First, some background: PAR Ltd. was founded in 1986 jointly by Assurex Global, Fireman's Fund Insurance and The Council of Insurance Agents and Brokers. The three companies’ mission in collaboration was to offer agencies and other organizations greater peace of mind concerning errors and omissions – not only by providing superior liability protection, but by taking new steps to prevent E&O from occurring in the first place.

Early on, DBH Consulting was called in to help architect the program that would soon establish PAR as an industry thought leader on quality-based risk management. The result was the PAR Quality Management Program, which is still adopted and implemented by all PAR clients.

In developing the program, DBH:

  • Facilitated all of the meetings required for needs assessment and scoping
  • Held roundtables with potential clients to solicit their input
  • Translated years of industry experience into best practices in management
  • Visited agencies to study and assess their practices on-site
  • Developed an annual audit procedure to monitor and evaluate processes
  • Created a standards manual for agencies to implement quality practices and reduce exposure to errors & omissions
  • Conducted annual meetings to share lessons learned among client quality managers

Now, more than two decades later, PAR’s Quality Management Program remains a key reason that PAR enjoys an astonishing 90% insured retention rate. And when asked to explain how they reduced errors and omissions at their agencies, clients often cite the components of the Quality Management Program – continuous education, ongoing assessment, and reinforcement through annual audits.

Over time, it was natural for DBH to evolve its role into executive-level sales and marketing services for PAR. Albert R. “Skip” Counselman, Director of AICPCU and Chairman / CEO of Baltimore-based Riggs, Counselman, Michaels & Downes, points to DBH's "ability to hear what is meant in addition to what is said" as a critical element for helping PAR build and strengthen its relationships with policyholders. DBH also continues to work with PAR in updating the Quality Management Program, as needed.