I think that a strong enterprise risk management [ERM] for S&P would be to do the job they should be doing. Had it not been for S&P, A M Best and Moody’s rating the sub-prime mortgage instruments as investment grade this article would have never been necessary.
Same here in Wisconsin. Our 2 big mutuals are crying, and a couple of the small one’s are saying that they are ready to write business aggressively. We also have a couple of hte Iowa companies in our office, and only Allied is pushing rate heading into 2009. (10 to 15% on most accounts)
But in our office ($6 million revenue) we have TRAVELER’s, and they tell us that they are in solid shape heading into 2009. Very high and heavy growth goals. we also have 2 mutuals from Michigan, 2 from Ohio, and 2 from Wisconsin. Only the 2 from Wisconsin are crying about the market and talking about significant rate increases for 2009. I was surprised that the MI and OH mutuals weren’t hurting. in fact, one of the Mich mutuals tells us that they are getting ready to get even more aggressive! They see 2009 as an opportunity to play!
Law of physics: For every action there is an equal and oposite reaction. In other words, Watch for a swing to the hard market probably in the second half of 09. This market will be very hard, you will be having your commissions cut, carriers puting a production gun to your head and Travelers will be totally uncompetitive. Thank goodness you have your mutuals. This market will bring internal increases but also headaches with renewals. The return to underwriting is coming. Trust me this is not my first rodeo.
Old agent, it’s so funny to see the comments from individuals who don’t seem to know that there is a cycle that is inevitable in our industry. We just can’t stand profitability in the hard market so we shoot ourselves and have a soft market. Over and over and over. As you said, I have seen a few of these cycles too and they are as inevitable as they are sad.
I think that a strong enterprise risk management [ERM] for S&P would be to do the job they should be doing. Had it not been for S&P, A M Best and Moody’s rating the sub-prime mortgage instruments as investment grade this article would have never been necessary.
Good point.
Same here in Wisconsin. Our 2 big mutuals are crying, and a couple of the small one’s are saying that they are ready to write business aggressively. We also have a couple of hte Iowa companies in our office, and only Allied is pushing rate heading into 2009. (10 to 15% on most accounts)
But in our office ($6 million revenue) we have TRAVELER’s, and they tell us that they are in solid shape heading into 2009. Very high and heavy growth goals. we also have 2 mutuals from Michigan, 2 from Ohio, and 2 from Wisconsin. Only the 2 from Wisconsin are crying about the market and talking about significant rate increases for 2009. I was surprised that the MI and OH mutuals weren’t hurting. in fact, one of the Mich mutuals tells us that they are getting ready to get even more aggressive! They see 2009 as an opportunity to play!
Law of physics: For every action there is an equal and oposite reaction. In other words, Watch for a swing to the hard market probably in the second half of 09. This market will be very hard, you will be having your commissions cut, carriers puting a production gun to your head and Travelers will be totally uncompetitive. Thank goodness you have your mutuals. This market will bring internal increases but also headaches with renewals. The return to underwriting is coming. Trust me this is not my first rodeo.
Old agent, it’s so funny to see the comments from individuals who don’t seem to know that there is a cycle that is inevitable in our industry. We just can’t stand profitability in the hard market so we shoot ourselves and have a soft market. Over and over and over. As you said, I have seen a few of these cycles too and they are as inevitable as they are sad.