Yes, the market is tightening . This means the prices are going up and certain coverages will not
\nbe obtainable. This hasn\u2019t happened in a very long time. In fact I would venture to say that most
\nof the practitioners in the insurance community were not in the last severe hard market. There
\nhave been a few short stints but nothing sustainable. Well it is uncomfortable for all parties
\nconcerned. The underwriter has a hard time delivering the harsh message, the broker has a
\nhard time convincing their client that this is the best we can do. The client feels placed in an
\nuntenable position of being hit in the face all of a sudden with the consequences of the market.
\nThe client is right there should be a more responsible way to handle this matter. The fact is
\nbased on the difficulties above everyone wants to do the best for their clients they can for as
\nlong as they can.
\nThe advice I can give at this time is number one: get a handle on your losses. Be in a position to
\nretain some loss. The better your comfort level is the more comfortable you will feel controlling
\nyour own destiny. In times of hard markets the insurance community acts very emotionally. Yes
\nthey have had losses and yes there is very little interest on the premiums but the emotional
\nwrath with which the market turns is quite severe. In most cases this is a good thing. Unless you
\nare one of the worst offenders loss wise, there is a very good chance there is a large difference
\nbetween your experience and the new market price.
\nExample
\nHistorically your loss experience or pick is at 60% of premium
\nHistorical premium $100
\nHistorical losses $65
\nNew premium $ 200
\nArbitrage $135
\nSo the emotional new premium says there is a number I can be somewhat safe managing
\ndifferently. Be open to innovation and be comfortable with the control you have.<\/p>\n","protected":false},"excerpt":{"rendered":"
Yes, the market is tightening . This means the prices are going up and certain coverages will not be obtainable. This hasn\u2019t happened in a very long time. In fact I would venture to say that most of the practitioners in the insurance community were not in the last severe hard market. There have been […]<\/p>\n","protected":false},"author":7,"featured_media":109,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"acf":[],"yoast_head":"\n