Shouldn’t UW and expense discipline be needed every year?
I mean, when was the last time an insurance CEO said publicly
“Hey, we’re going to throw the floodgates open and write everybody at the lowest price possible, and then buy all sorts of crap we don’t need with the premium money?”
Underwriting? Do companies still do that? From what I see, PL companies have replaced their underwriters decision making skills with a rating matrix which now makes an underwriter an entry level position. It is all black and white now, no gray.
Underwriting discipline and managing the reserves are of primay importance. Expenses need to be well managed but balanced in the human resource area. Nothing worse for a company than having employees bear the burden of expense control. Because when the economy pick’s up, your best employees will leave in droves. It’s in these hard times where you’ll find your best Managers that know how to control expenses intelligently while keeping the employees content, secure and focused. From this stand point, companies need to manage the future, not the quarterly.
Rocket88, I can think of a particular TPA in the business that could use a healthy dose of your wisdom in allowing employees to bear the expense of cost control.
Rocket88, I can think of a particular TPA in the business that could use a healthy dose of your wisdom in preventing employees from bearing the expense of cost control.
It would be nice to hear one of these CEO’s offer some specifics on how they will motivate their employees to improve underwriting discipline. Oh, that’s right, it’s the other guy that has the problem, we’ve always maintained discipline.
“we’re going to throw our floodgates open and write everybody at the lowest price”….. Isn’t that what Indiana Insurance has been doing for almost 10 years?
Shouldn’t UW and expense discipline be needed every year?
I mean, when was the last time an insurance CEO said publicly
“Hey, we’re going to throw the floodgates open and write everybody at the lowest price possible, and then buy all sorts of crap we don’t need with the premium money?”
Underwriting? Do companies still do that? From what I see, PL companies have replaced their underwriters decision making skills with a rating matrix which now makes an underwriter an entry level position. It is all black and white now, no gray.
Underwriting discipline and managing the reserves are of primay importance. Expenses need to be well managed but balanced in the human resource area. Nothing worse for a company than having employees bear the burden of expense control. Because when the economy pick’s up, your best employees will leave in droves. It’s in these hard times where you’ll find your best Managers that know how to control expenses intelligently while keeping the employees content, secure and focused. From this stand point, companies need to manage the future, not the quarterly.
Rocket88, I can think of a particular TPA in the business that could use a healthy dose of your wisdom in allowing employees to bear the expense of cost control.
Rocket88, I can think of a particular TPA in the business that could use a healthy dose of your wisdom in preventing employees from bearing the expense of cost control.
Underwriting discipline. Two words you only hear after a period of underwriting without discipline.
It would be nice to hear one of these CEO’s offer some specifics on how they will motivate their employees to improve underwriting discipline. Oh, that’s right, it’s the other guy that has the problem, we’ve always maintained discipline.
“we’re going to throw our floodgates open and write everybody at the lowest price”….. Isn’t that what Indiana Insurance has been doing for almost 10 years?