Sort of a gratuitous story, isn’t it? What in the world would make one think that the soft market is over???? Why is this even the subject of an article??
The same people that say there will be a turn around soon are the same ones who have been, since 2008, saying we’re in an economic recovery. Sure we are…P&C market is going up and the unemployment rate is going down…you believe that don’t you?
The RIMS survey is annoying because it looks at the average premiums, it does not look at what’s important: RATE. The CIAB surveys from November and December showed decreases in rates between 2-6%. Down down down down down…
For every carrier walking away from business or firm their renewals, there is another carrier willing to write the business for the same price or cheaper. That’s the tailspin we are in today. Carriers can’t firm up their book of business to needed pricing levels, because the regionals (in particular) continue to buy and buy and buy business. I’ve never seen the Midwest so competitive, and yet every carrier walks in our office and complains about the money they are losing.
And then there are the carriers losing money who think they can just start slashing their book by cutting out lines of business that they used to write aggressively. You sorry buffoons. You think that your problems can just go away because you get rid of a class of business or a line of coverage? Re-underwrite, reprice, or do what you need to do. But I’ll be your for every account you non-renew, you probably lose 2 accounts that are target business, because the agency has had enough of your obtuse and ignorant approach to book management.
Like the old saying, Winners Curse and Losers Remorse. If you price aggressively enough you will lose money in the long run, and if don’t, well you wont get any business. Carriers are just chasing their own tails and writing themselves into oblivion. They are loosing money from a UW standpoint, but still sitting on large piles of money. It will just be a matter of time before this scenario plays itself out…
You’re absolutely correct! Industry underwriting ratios of 99% are unacceptable. I’ve worked a companies that would slow new business growth in order to control underwriting ratios.
Sort of a gratuitous story, isn’t it? What in the world would make one think that the soft market is over???? Why is this even the subject of an article??
What world are they living Commercial Lines are still in a free fall!!!Last couple of months is the worst I have seen in 23 years in the business.
The same people that say there will be a turn around soon are the same ones who have been, since 2008, saying we’re in an economic recovery. Sure we are…P&C market is going up and the unemployment rate is going down…you believe that don’t you?
The RIMS survey is annoying because it looks at the average premiums, it does not look at what’s important: RATE. The CIAB surveys from November and December showed decreases in rates between 2-6%. Down down down down down…
For every carrier walking away from business or firm their renewals, there is another carrier willing to write the business for the same price or cheaper. That’s the tailspin we are in today. Carriers can’t firm up their book of business to needed pricing levels, because the regionals (in particular) continue to buy and buy and buy business. I’ve never seen the Midwest so competitive, and yet every carrier walks in our office and complains about the money they are losing.
And then there are the carriers losing money who think they can just start slashing their book by cutting out lines of business that they used to write aggressively. You sorry buffoons. You think that your problems can just go away because you get rid of a class of business or a line of coverage? Re-underwrite, reprice, or do what you need to do. But I’ll be your for every account you non-renew, you probably lose 2 accounts that are target business, because the agency has had enough of your obtuse and ignorant approach to book management.
Like the old saying, Winners Curse and Losers Remorse. If you price aggressively enough you will lose money in the long run, and if don’t, well you wont get any business. Carriers are just chasing their own tails and writing themselves into oblivion. They are loosing money from a UW standpoint, but still sitting on large piles of money. It will just be a matter of time before this scenario plays itself out…
You’re absolutely correct! Industry underwriting ratios of 99% are unacceptable. I’ve worked a companies that would slow new business growth in order to control underwriting ratios.