Back to Blog

Why Transparency Wins: The Hidden Cost of Incomplete Stop Loss Quotes

By Joe Landziak, CSFS, 10 Years Stop Loss Experience
|
stop loss quotesbroker transparencyunderwriting information

The Partnership Mindset

Brokers should think of us as being just a few cubicles away—an extension of their team. The more complete the picture we can paint, the better the results.

The Information Gap Problem

One challenge we see repeatedly: brokers request a stop-loss quote but hold back key details—like current and prior rates—hoping that will lead to better pricing. The logic seems sound: "If they don't know what we're paying now, maybe they'll quote lower."

Why This Backfires

The reality is carriers need that information to calculate an accurate loss ratio and determine if they're even in the same ballpark competitively. When carriers quote without that context—assuming they don't decline outright—they'll usually take a conservative approach to protect against the unknown.

The result? Artificially high quotes that don't reflect the group's actual risk.

Even if the quote looks competitive, carriers will still require those rates later to firm up pricing. So you've delayed the process and likely received less competitive initial pricing.

Providing a full package of information upfront almost always leads to better outcomes.

Our Solution: The Underwriting Wish List

We share a "wish list" with brokers upfront so they know exactly what we're hoping for:

  • Census: dob, gender, zip, plan, tier and status
  • Current/proposed plan designs or SBCs
  • 3-4 years of claims data (when available)
  • 3-4 years of rate history
  • Plan or vendor changes, preferences in quoting, or insight on specific claimants

The caveat: Every group is different. Some groups don't have claims data because of size or location, and that's okay—we use different underwriting strategies for those cases.

The XL Benefits Advantage

Our role is to distill and curate the most relevant information carriers need because we work with them every day. We know what moves the needle and what's just noise.

Think of it this way: carriers receive hundreds of quote requests. The submissions that include comprehensive, well-organized information stand out. They signal that the broker is serious, the group is stable, and the business is worth competing for. Incomplete submissions often get deprioritized or quoted conservatively as a protective measure.

Real-World Impact

When brokers provide complete information from the start, we see measurably better outcomes:

  • Faster turnaround times - Carriers can quote confidently without back-and-forth requests
  • More competitive pricing - No need to pad quotes for unknown risk
  • Higher carrier participation - Complete submissions attract more competitive markets
  • Stronger broker-client relationships - Better quotes mean happier clients

The difference between a complete and incomplete submission can easily be 10-15% in quoted premium—not because the risk changed, but because the carrier's confidence level changed.

What To Do Next

Bottom line: Send us everything you have—even if it feels incomplete. We'll work with you to assemble the strongest package possible.

Not sure what carriers need for your specific group? Reach out. We'll walk you through exactly what will strengthen your submission and what we can work around.

Because at the end of the day, transparency isn't just about getting better quotes—it's about building a partnership that delivers consistent value for your clients year after year.

Need Help with Stop-Loss?

Our team of experts is ready to help you navigate the complexities of self-funding and stop-loss insurance.