It has been my experience with carriers on the Commercial side that their appetite guide is in constant flux with what they want to write based on claims experience with certain types of business along with what the economy is doing. Many will check the credit rating of the risk before approving. Many will only underwrite based on whether the risk fits in their little box rather than looking at the individual account and checking the Loss Runs on the experience. Most will write the plain vanilla main street business but few will think outside the box. There has been a huge decline in experienced underwriters in the industry and the young replacements don’t have much common sense and rely on their computer models so we don’t see much creativity as well. Unfortunate, but true.
Agreed that the industry is not doing a good job developing underwrting talent. There are pockets but in general there is going to be a problem in the next 5 years. I am looking the ranks in my company I am concerned.
I hear more and more everyday there is less focus on learning the trade and more about getting bodies in to process. Bad pricing hurts companies. Bad decisions on coverage and risk selection kills them.
Actuaries using models to drive the P&C cycle. It’s another way for Sr Management to dodge responsibility for whipping their underwriters to produce more profitable business as rates fall. An impossible task mad more difficult by this depression, excess capacity and a lack of management discipline.
Thinking outside the box is an old cliche, and usually code for difficult to place insureds that are not willing to pay adequate premium for their exposures. Agree there has been a huge decline in qualified, skilled underwriters, but when its only the lowest price that sells, why build quality underwriting?
This meeting during which this was presented was a month ago, not “this week” as the article states.
Somebody didn’t read the press release very carefully.
It has been my experience with carriers on the Commercial side that their appetite guide is in constant flux with what they want to write based on claims experience with certain types of business along with what the economy is doing. Many will check the credit rating of the risk before approving. Many will only underwrite based on whether the risk fits in their little box rather than looking at the individual account and checking the Loss Runs on the experience. Most will write the plain vanilla main street business but few will think outside the box. There has been a huge decline in experienced underwriters in the industry and the young replacements don’t have much common sense and rely on their computer models so we don’t see much creativity as well. Unfortunate, but true.
Agreed that the industry is not doing a good job developing underwrting talent. There are pockets but in general there is going to be a problem in the next 5 years. I am looking the ranks in my company I am concerned.
I hear more and more everyday there is less focus on learning the trade and more about getting bodies in to process. Bad pricing hurts companies. Bad decisions on coverage and risk selection kills them.
Actuaries using models to drive the P&C cycle. It’s another way for Sr Management to dodge responsibility for whipping their underwriters to produce more profitable business as rates fall. An impossible task mad more difficult by this depression, excess capacity and a lack of management discipline.
Thinking outside the box is an old cliche, and usually code for difficult to place insureds that are not willing to pay adequate premium for their exposures. Agree there has been a huge decline in qualified, skilled underwriters, but when its only the lowest price that sells, why build quality underwriting?