So, expsoures are way down, but the claims keep coming. The tail doesn’t stop from IBNR of years past. The premium isn’t there. Many carriers that were heavy into the construction industry were returning premium on audits, and renewals were pennies compared to expiring.
C’mon, somebody (some carrier) has to be feeling some pain? Which carriers are starting to crack? Is anybody seeing it?
these buyers will be in for a rude awakening if this market ever hardens. They complain about $10,000 premiums when they should be paying $50k and were just years ago. Accounts that were paying $10k five years ago, now are paying less than $2000. Something has to give.
THere’s too many carriers buying business…and crappy business at that. When you rapidly build a book of business in these market conditions, there’s one certainty. Its going to blow up. The question is who will be first and when?
Agents….stop complaining about lower commissions when you shop your accounts to every cheap flavor of the month. You’re just as much to blame as the clueless underwriters who put out these dirt cheap quotes.
I’ve heard that West Bend and United Fire are starting to crack. Acuity has been stagnant (quiet) for a couple of years now. They’re not bragging the way that they were a few years ago.
The experts are saying no end in sight for the soft market. Maybe. But the players will change. So many of these regionals are going to get sucked under, eventually. Traveler’s and Lib Mutual are going to continue to drive the softness.
As joker states, if the agents would stand firm and push the rate that is appropriate, then the market could at least stabilize. But instead, the agents start inviting in every flavor of the month that they can get their hands on. And they all grumble about Liberty Mutual, Indiana and Peerless, getting cheap prices, undercut, and poor service. But there they are, every single one of them, suckling at the teat repeatedly.
Our informative “friends” at Lockton are not the largest insurance broker, they are just the largest privately held insurance broker. Big diffreence and off by an order of magnitude or so. But what’s another zero among “friends”?
They are trying to drum up new business with their release, in much the same role as Liberty Mutual–“we’ve got the cheap stuff, guys!, come on down!!”
Is this driven by opportunism or trying to cover the bills from too much raiding of other brokerages?–you can’t tell because the books are not transparent. Maybe they can open their books and clarify. Otherwise, it is just puffery. After all, a degree of leverage leads to strange actions in lean and slow times. Not leverage you say? “Show us the money” in the books.
As Goldman Sachs always says: “Caveat Emptor”–“Let the buyer beware.” And now we know what lay behind that attitude.
Risk managers have seen this all before. Buy quality, not price and that is more critical in choosing a broker than the insurance company. They sound a bit like a carnival barker, don’t they. A clue to listen very carefully both when they are on and off message.
True enough, Lockton is the world’s largest privately held broker, not the largest broker. IJ apparently made an editing error in their story. Thanks, RM.
I respectfully disagree with your conclusion that it’s a release to “come on down.” Lockton is sharing insight on the markets as a service to clients and potential clients.
“SOFT MARKET PRICING CONTINUES TO BE DRIVEN BY LIBERTY MUTUAL MARKETS AND A LACK OF GENERAL UNDERWRITING INSANITY”
How can these idiots be making any money, at the rates they’re charging? Indiana is cheap, cheap, cheap, and no hint of slowing down.
So, expsoures are way down, but the claims keep coming. The tail doesn’t stop from IBNR of years past. The premium isn’t there. Many carriers that were heavy into the construction industry were returning premium on audits, and renewals were pennies compared to expiring.
C’mon, somebody (some carrier) has to be feeling some pain? Which carriers are starting to crack? Is anybody seeing it?
these buyers will be in for a rude awakening if this market ever hardens. They complain about $10,000 premiums when they should be paying $50k and were just years ago. Accounts that were paying $10k five years ago, now are paying less than $2000. Something has to give.
THere’s too many carriers buying business…and crappy business at that. When you rapidly build a book of business in these market conditions, there’s one certainty. Its going to blow up. The question is who will be first and when?
Agents….stop complaining about lower commissions when you shop your accounts to every cheap flavor of the month. You’re just as much to blame as the clueless underwriters who put out these dirt cheap quotes.
The truth, you can’t handle the truth !
I’ve heard that West Bend and United Fire are starting to crack. Acuity has been stagnant (quiet) for a couple of years now. They’re not bragging the way that they were a few years ago.
The experts are saying no end in sight for the soft market. Maybe. But the players will change. So many of these regionals are going to get sucked under, eventually. Traveler’s and Lib Mutual are going to continue to drive the softness.
Look out, it could get ugly. I mean real ugly.
As joker states, if the agents would stand firm and push the rate that is appropriate, then the market could at least stabilize. But instead, the agents start inviting in every flavor of the month that they can get their hands on. And they all grumble about Liberty Mutual, Indiana and Peerless, getting cheap prices, undercut, and poor service. But there they are, every single one of them, suckling at the teat repeatedly.
The article says:
“reports the nation’s largest insurance broker”
Our informative “friends” at Lockton are not the largest insurance broker, they are just the largest privately held insurance broker. Big diffreence and off by an order of magnitude or so. But what’s another zero among “friends”?
They are trying to drum up new business with their release, in much the same role as Liberty Mutual–“we’ve got the cheap stuff, guys!, come on down!!”
Is this driven by opportunism or trying to cover the bills from too much raiding of other brokerages?–you can’t tell because the books are not transparent. Maybe they can open their books and clarify. Otherwise, it is just puffery. After all, a degree of leverage leads to strange actions in lean and slow times. Not leverage you say? “Show us the money” in the books.
As Goldman Sachs always says: “Caveat Emptor”–“Let the buyer beware.” And now we know what lay behind that attitude.
Risk managers have seen this all before. Buy quality, not price and that is more critical in choosing a broker than the insurance company. They sound a bit like a carnival barker, don’t they. A clue to listen very carefully both when they are on and off message.
True enough, Lockton is the world’s largest privately held broker, not the largest broker. IJ apparently made an editing error in their story. Thanks, RM.
I respectfully disagree with your conclusion that it’s a release to “come on down.” Lockton is sharing insight on the markets as a service to clients and potential clients.