https://www.insurerbrain.com/w/index.php?action=history&feed=atom&title=Definition%3AQuoteDefinition:Quote - Revision history2026-04-29T22:27:38ZRevision history for this page on the wikiMediaWiki 1.43.8https://www.insurerbrain.com/w/index.php?title=Definition:Quote&diff=7060&oldid=prevPlumBot: Bot: Creating new article from JSON2026-03-10T05:08:10Z<p>Bot: Creating new article from JSON</p>
<p><b>New page</b></p><div>💬 '''Quote''' in insurance refers to a formal or semi-formal indication of the [[Definition:Premium | premium]], [[Definition:Term | terms]], [[Definition:Condition | conditions]], and [[Definition:Coverage | coverage]] an [[Definition:Insurance carrier | insurer]] or [[Definition:Underwriter | underwriter]] is prepared to offer for a specific risk. It sits at a critical juncture in the [[Definition:Insurance distribution | distribution]] workflow — after the [[Definition:Submission | submission]] has been evaluated and before the [[Definition:Policyholder | applicant]] decides to [[Definition:Binding | bind]] coverage. Depending on the line of business, a quote may be a binding commitment valid for a stated period or a non-binding indication subject to further review, additional information, or [[Definition:Underwriting | underwriting]] conditions.<br />
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⚙️ Generating a quote can range from a fully automated, sub-second process in [[Definition:Personal lines | personal lines]] — where [[Definition:Rating engine | rating engines]] and [[Definition:Predictive model | predictive models]] ingest applicant data and return pricing instantly — to a weeks-long negotiation in [[Definition:Specialty insurance | specialty]] or [[Definition:Commercial insurance | commercial]] markets, where [[Definition:Broker | brokers]] and underwriters exchange information, loss data, and draft wordings before a final price emerges. In the [[Definition:Lloyd's of London | Lloyd's]] market, the quote often takes the form of a marked-up [[Definition:Slip | slip]] with the lead underwriter's stamp and terms. [[Definition:Insurtech | Insurtech]] platforms have compressed the quoting cycle across many lines, enabling [[Definition:Real-time underwriting | real-time]] or near-real-time quotes through [[Definition:Application programming interface (API) | API]] integrations that pull data from third-party sources, reducing reliance on manual application forms.<br />
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📌 The accuracy and competitiveness of the quoting process directly affect an insurer's [[Definition:Hit ratio | hit ratio]] — the percentage of quotes that convert into bound policies. Underpricing wins business but erodes [[Definition:Loss ratio (L/R) | loss ratios]]; overpricing preserves margins but drives [[Definition:Broker | brokers]] and customers to competitors. Advanced carriers use [[Definition:Data analytics | data analytics]] to continuously calibrate their quoting models, tracking conversion rates by segment, geography, and distribution channel. In [[Definition:Delegated underwriting authority (DUA) | delegated authority]] programs, the [[Definition:Coverholder | coverholder's]] ability to quote within the carrier's guidelines — without referring every risk back to the underwriting team — is a key measure of the program's operational efficiency.<br />
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'''Related concepts'''<br />
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* [[Definition:Submission]]<br />
* [[Definition:Binding]]<br />
* [[Definition:Rating engine]]<br />
* [[Definition:Indication]]<br />
* [[Definition:Hit ratio]]<br />
* [[Definition:Premium]]<br />
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