Well, I have seen premiums go up as much as 70% !! I have a small photo lab that had an expiring premium of $500 and the renewal offer came in at $850. many other insureds have seen an average increase of 30-40%. I will be quoting very little new biz with Travelers in the near future.
I sometimes wonder what these guys are smoking. Their small business renewal pricing increases are out of line with the market, not that they were overly competitive to begin with. So once again we work harder to replace business, frequently at lower pricing than expiring and therefore make less money in the process… all the while decreasing our credibility. But then again, nothing new about that!
TX agent sums it up simply in one sentence. On new business and lines of business that are profitable, Traveler’s will floor the competition to maintain or get the business.
On the other hand, Traveler’s has accounts and lines of business that are unprofitable. In these cases, Traveler’s will raise rates to reduce the loss or write less business and return to profitability.
With the Fed’s decision to keep interest rates near 0 until 2014, insurance companies should be paying much more attention to their underwriting profit. Investment income will be next to nothing over this time.
Last month, Travelers wrote a $22,000,000 frame apartment complex in Texas for $83,600 when the next lowest quote was $119,750.
This “rate increase” campaign by Fishman is pure BS. He’s thumping his chest about ordinary rate corrections any company would make on an unprofitable book of business. And, don’t get me started on reserve take downs which I consider to be legalized larceny. This is all stock manipulation of the highest order.
I have an account that is a larger grading of land and utility contractor with some larger trucks and not so good experience, as they are being non-renewed from Montgomery at 86K ( I am sure the incumbent didnt tell that to his underwriter though) I am trying to get this account away from the incumben and have a fairly good quote at 92K and good terms but I have a feeling that the incumbent went to Travelers with a submission. Does anyone out there know if this is a targeted industry class for Travelers and if so what their pricing is on this type of account.
Well, I have seen premiums go up as much as 70% !! I have a small photo lab that had an expiring premium of $500 and the renewal offer came in at $850. many other insureds have seen an average increase of 30-40%. I will be quoting very little new biz with Travelers in the near future.
But, Mike, no one makes any money on a $500 policy. Small accounts are also underpriced.
I sometimes wonder what these guys are smoking. Their small business renewal pricing increases are out of line with the market, not that they were overly competitive to begin with. So once again we work harder to replace business, frequently at lower pricing than expiring and therefore make less money in the process… all the while decreasing our credibility. But then again, nothing new about that!
Well, they just took a renewal from me and undercut my pricing by 18% ($76,000 vs. $93,000). I REALLY want to know what they’re smokin’.
New Business Underwriters didn’t get the email that the renewal underwriters recieved.
TX agent sums it up simply in one sentence. On new business and lines of business that are profitable, Traveler’s will floor the competition to maintain or get the business.
On the other hand, Traveler’s has accounts and lines of business that are unprofitable. In these cases, Traveler’s will raise rates to reduce the loss or write less business and return to profitability.
With the Fed’s decision to keep interest rates near 0 until 2014, insurance companies should be paying much more attention to their underwriting profit. Investment income will be next to nothing over this time.
Last month, Travelers wrote a $22,000,000 frame apartment complex in Texas for $83,600 when the next lowest quote was $119,750.
This “rate increase” campaign by Fishman is pure BS. He’s thumping his chest about ordinary rate corrections any company would make on an unprofitable book of business. And, don’t get me started on reserve take downs which I consider to be legalized larceny. This is all stock manipulation of the highest order.
I have an account that is a larger grading of land and utility contractor with some larger trucks and not so good experience, as they are being non-renewed from Montgomery at 86K ( I am sure the incumbent didnt tell that to his underwriter though) I am trying to get this account away from the incumben and have a fairly good quote at 92K and good terms but I have a feeling that the incumbent went to Travelers with a submission. Does anyone out there know if this is a targeted industry class for Travelers and if so what their pricing is on this type of account.
Here in California, I would be very surprised if Travelers would entertain this risk.
FYI