Ever received an email from your insurance broker that looks like a graveyard of “Declined” quotes?
It’s a common sight: a list of ten or twelve big-name insurers, all supposedly saying “No.” The message between the lines is clear: “Look how hard we worked, and look how lucky you are that we found this one (very expensive) option.”
In this real-life case, the broker listed 11 declines and one lone quote from QBE for $28,762.
The “Theatre of Effort”
Brokers use this “Long List of Declines” to make a massive premium increase feel like a hard-won victory. They point to things like “high-risk tenants” or “heritage overlays” to explain why everyone else said no. It’s designed to make you feel like you have no choice but to pay up.
The truth? It’s often smoke and mirrors.
The client brought that exact list to Luma and within 48 hours, we found multiple insurers who were happy to provide cover.
The result? A quote for less than $16,000.
That’s a ~$13,000 difference. The “impossible” task the original broker claimed to have performed was actually just a lazy renewal. And $13,000 saving for a small business is huge.
The Commission Trap
Why would a broker stop at a $28k quote when a $16k quote is available? It often comes down to the hidden commission.
On a $28,762 premium,
the broker’s payday is substantial
On a $16,000 premium,
their commission drops by nearly half.
Under this traditional model, your broker has a financial incentive to keep your insurance expensive. That long list of declines isn’t just a report; it’s a distraction from the fact that they aren’t incentivised to save you money.
FAQs: How to avoid the “Lazy Renewal” Tax
1. Ask your broker about their commission.
If you ask, they must tell you. You might be startled by how much they earn, especially if your business hasn't changed. Negotiate this or, better yet, ask them to work for a fixed fee. This removes their incentive to keep your premium high.
2. Ask how they actually "marketed" your quote.
If they just used an online aggregator (a "portal") and didn't talk to underwriters directly (a "Manual" quote), they haven't really worked for you. Also, if you only see big names like QBE or Allianz, be wary. The best deals often come from specialist insurers you’ve never heard of, but who understand your specific niche.
3. Challenge the "Automatic Indexation."
Notice in the email above where the broker mentions a "10% indexation" on building costs? Brokers often let insurers automatically bump up your "Sum Insured" every year. While you need enough cover, this automatic 10% hike is a sneaky way for premiums—and commissions—to creep up without anyone actually checking if your building's value has really changed. Ask for a valuation check instead of a blind 10% increase.
4. Ask for the "Decline" evidence.
If a broker says 10 insurers declined your business, ask to see the actual emails or letters from those underwriters. A "decline" can sometimes just mean the broker didn't provide enough information to the insurer to get a "yes." If they can’t show you the proof, they probably didn't actually try.
Is your renewal coming up?
Don’t be distracted by a long list of “No’s.” Send us your current renewal and let us see if we can find the “hidden” options your broker might have “missed.”
Say Goodbye to the Lazy Renewal Tax.