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📋 '''Quote (insurance)''' is a formal or semi-formal statement issued by an [[Definition:Insurance carrier | insurer]], [[Definition:Managing general agent (MGA) | MGA]], or [[Definition:Underwriting | underwriter]] to a prospective [[Definition:Policyholder | policyholder]] or [[Definition:Insurance broker | broker]] indicating the [[Definition:Insurance premium | premium]], terms, conditions, and coverage parameters under which the insurer is willing to provide an [[Definition:Insurance policy | insurance policy]]. A quote is not yet a bound contract — it represents an offer or indication, typically valid for a specified period, that the applicant can accept, negotiate, or decline. In commercial and specialty lines, quotes may take the form of detailed indication letters or formal quotation slips, while in personal lines, they are increasingly generated instantaneously through online [[Definition:Rating engine | rating engines]] and [[Definition:Insurtech | insurtech]] platforms.

⚙️ The quoting process begins when a risk is submitted to the market — whether through a broker's submission, a direct online application, or an automated data feed. The underwriter or rating algorithm evaluates the risk based on the information provided, applies the insurer's [[Definition:Underwriting guidelines | underwriting guidelines]] and [[Definition:Pricing model | pricing models]], and produces a quote specifying the premium, [[Definition:Deductible | deductible]], [[Definition:Policy limit | limits]], [[Definition:Exclusion | exclusions]], and any [[Definition:Warranty (insurance) | warranties]] or [[Definition:Subjectivity | subjectivities]] that must be satisfied before the policy can be bound. In the [[Definition:Lloyd's of London | Lloyd's]] and London market, the quoting process often involves multiple underwriters each quoting a share of the risk on a [[Definition:Slip (insurance) | slip]], with the [[Definition:Lead underwriter | lead underwriter]] setting the benchmark terms. Digital transformation has compressed quoting timelines dramatically: what once took days or weeks for commercial risks can now occur in minutes for standardized product classes, with [[Definition:Application programming interface (API) | API]]-connected platforms enabling real-time multi-carrier quoting.

💡 The speed, accuracy, and competitiveness of an insurer's quoting capability directly influence its ability to win business and maintain profitable [[Definition:Book of business | books of business]]. A quote that arrives late or fails to address the broker's specific submission requirements often loses to faster competitors, making quoting efficiency a key differentiator — particularly in the small commercial and personal lines segments where technology-driven [[Definition:Straight-through processing (STP) | straight-through processing]] is becoming the norm. At the same time, the quality of information underpinning a quote matters enormously: quotes issued on incomplete or inaccurate submissions can lead to [[Definition:Adverse selection | adverse selection]], mispriced risk, and downstream disputes over coverage. Regulatory frameworks in many jurisdictions also impose disclosure requirements at the quotation stage, ensuring that prospective policyholders receive clear information about what is and is not covered before committing to purchase.

'''Related concepts:'''
{{Div col|colwidth=20em}}
* [[Definition:Underwriting]]
* [[Definition:Insurance premium]]
* [[Definition:Binding authority agreement]]
* [[Definition:Rating engine]]
* [[Definition:Slip (insurance)]]
* [[Definition:Indication]]
{{Div col end}}

Definition:Quote (insurance) - Revision history

PlumBot: Bot: Creating new article from JSON