CLAIMS HISTORY& UNDERWRITING
FIVE YEARS OF LOSS RUNS TELL CARRIERS WHETHER TO QUOTE — AND AT WHAT PRICE.
FREQUENCY AND SEVERITY TELL TWO DIFFERENT STORIES.
A loss run with twelve small water damage claims in three years tells the carrier the building has a systemic plumbing problem. A loss run with one large wrongful death claim tells the carrier the community has a high-severity amenity exposure. Carriers respond differently — systemic frequency often leads to higher deductibles or exclusions, while isolated severity leads to pricing adjustments and umbrella recommendations.
The association cannot change past claims, but it can change the narrative. Replacing the cast iron plumbing that generated the water claims, installing compliant safety equipment at the pool, implementing board training after D&O claims — these remediation steps are what carriers evaluate alongside raw loss history. Kelly Insurance Group documents remediation efforts in every submission to specialty markets.
CLAIMS HISTORY — ANSWERED.
HOW DO CARRIERS USE CLAIMS HISTORY?
Review five-year loss runs for frequency and severity. High frequency signals ongoing risk. High severity signals catastrophic exposure. Both affect pricing and willingness to quote.
WHAT CLAIM TYPES CONCERN CARRIERS MOST?
Water damage from aging plumbing (frequency), amenity slip-and-falls (premises issues), D&O claims (governance problems), construction defects (building quality). Multiple claims of the same type signal systemic problems.
CAN THE ASSOCIATION IMPROVE ITS HISTORY?
Can't change past claims but can demonstrate remediation — replacing systems, installing safety equipment, implementing training. Carriers evaluate trajectory and improvements alongside raw loss data.
WHAT IS A LOSS RUN?
Carrier report of all claims filed over a specified period, typically five years. Request from each carrier 90 to 120 days before renewal for marketing time.
DOES FREQUENCY OR SEVERITY MATTER MORE?
Both matter differently. High frequency suggests systemic problems. High severity suggests catastrophic exposure. Carriers view high frequency as harder to underwrite because it signals ongoing conditions.
HOW LONG DO CLAIMS AFFECT INSURANCE?
Most carriers evaluate a five-year window. Older claims generally fall off. Large open claims with significant reserves affect underwriting regardless of age until resolved and closed.
TURN YOUR CLAIMS HISTORY INTO AN UNDERWRITING STORY.
Kelly Insurance Group documents remediation and improvement in every submission so carriers see the trajectory, not just the history. Since 1881.
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