https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AIndication 2026-06-14T08:05:43Z Revision history for this page on the wiki MediaWiki 1.43.8 https://www.insurerbrain.com/w/index.php?title=Definition:Indication&diff=7743&oldid=prev 2026-03-10T13:17:47Z

<p>Bot: Creating new article from JSON</p> <p><b>New page</b></p><div>📋 &#039;&#039;&#039;Indication&#039;&#039;&#039; is an informal, preliminary estimate of [[Definition:Premium | premium]] or rate that an [[Definition:Underwriter | underwriter]] provides before committing to a formal [[Definition:Quote | quote]] or [[Definition:Binding authority agreement | binding]] terms. In insurance and [[Definition:Reinsurance | reinsurance]] markets, indications serve as early signals during the placement process, giving [[Definition:Insurance broker | brokers]] and prospective [[Definition:Policyholder | insureds]] a sense of where pricing is likely to land without obligating the underwriter to honor that figure. The term carries an explicit understanding that the numbers are directional, not final.<br /> <br /> 🔄 During a typical placement, a broker circulates a [[Definition:Submission | submission]] — including exposure data, loss history, and coverage specifications — to multiple [[Definition:Insurance carrier | carriers]]. Underwriters review the information and respond with indications that reflect their initial assessment of the risk&#039;s [[Definition:Loss ratio (L/R) | loss ratio]] potential, required [[Definition:Rate | rate]], and likely terms. These indications help the broker narrow the field, identify the most competitive markets, and guide the insured&#039;s expectations before detailed [[Definition:Underwriting | underwriting]] analysis begins. In [[Definition:Reinsurance | reinsurance]], indications are especially common during renewal season, when [[Definition:Cedent | cedents]] and brokers use them to gauge market appetite and capacity months ahead of inception.<br /> <br /> 💡 Treating an indication as a firm price is one of the most common missteps in commercial insurance placements. Because indications are issued before full [[Definition:Underwriting | underwriting]] diligence — sometimes before loss runs are even reviewed in depth — the final quoted premium can shift materially in either direction once the underwriter completes their analysis. Nonetheless, indications are invaluable for market strategy: they reveal capacity constraints, highlight which layers or perils are attracting carrier interest, and allow brokers to structure programs efficiently. A well-managed indication process ultimately accelerates time to [[Definition:Binding | bind]] and reduces wasted effort on markets that were never going to be competitive.<br /> <br /> &#039;&#039;&#039;Related concepts&#039;&#039;&#039;<br /> {{Div col|colwidth=20em}}<br /> * [[Definition:Indicative quote]]<br /> * [[Definition:Quote]]<br /> * [[Definition:Submission]]<br /> * [[Definition:Underwriting]]<br /> * [[Definition:Rate]]<br /> * [[Definition:Premium]]<br /> {{Div col end}}</div>

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