Last I saw, agents are all pushing for more commission while at the same time rates are declining. There is only so much you can squeeze from the carriers before they push back, David.
Train the incoming generation of agents to sell something other than price and maybe the market will stabilize, possibly even seen rate increases in areas that need it, and then the commissions dollars will naturally increase.
Maybe it’s time we start raising prices? The push over the last 5 years to do nothing but lower prices can only go so far and has to end. And reserve take downs – the well is only so deep, and I think we’re seeing this. Nice to see carriers having issues. Mix in a cat (or two) and we just might have that hard market.
There’s still too much capacity out there. The greedy CEOs will push for top line dollars unless something like a 9/11 occurs. Admitted markets are playing in the E&S sandbox, writing high hazard risks with BOP pricing and little underwriting effort. Large account underwriting managers are ignoring loss picks. Nothing will change until there’s a YUGE mess.
We’ll need a few more quarters like this to even think about a hard market. Doesn’t hurricane season start in about a month? The 99.7 combined is still very palatable for the industry with plenty of capital coming into the market to write at soft pricing.
The end of the (long and tortuous for agents) soft market? Please say yes!
Here comes more commission cuts from carriers. They will roll out unattainable bonus plans disguised as an actual benefit to the agents.
Last I saw, agents are all pushing for more commission while at the same time rates are declining. There is only so much you can squeeze from the carriers before they push back, David.
Train the incoming generation of agents to sell something other than price and maybe the market will stabilize, possibly even seen rate increases in areas that need it, and then the commissions dollars will naturally increase.
Maybe it’s time we start raising prices? The push over the last 5 years to do nothing but lower prices can only go so far and has to end. And reserve take downs – the well is only so deep, and I think we’re seeing this. Nice to see carriers having issues. Mix in a cat (or two) and we just might have that hard market.
There’s still too much capacity out there. The greedy CEOs will push for top line dollars unless something like a 9/11 occurs. Admitted markets are playing in the E&S sandbox, writing high hazard risks with BOP pricing and little underwriting effort. Large account underwriting managers are ignoring loss picks. Nothing will change until there’s a YUGE mess.
We’ll need a few more quarters like this to even think about a hard market. Doesn’t hurricane season start in about a month? The 99.7 combined is still very palatable for the industry with plenty of capital coming into the market to write at soft pricing.