So far, this has been a very unprofitable hard market for us. We agents are not (yet) benefiting from higher pricing but are getting the hassle and headaches associated with the market disruption. The customers are squarely blaming us for the non-renewals, terms changes and dramatically increasing premiums but enough of them are either dropping coverage or going to a cheaper solution via an agency that will reduce coverage to get the rate to a ‘budget’ number without regard to protection (some our agency just won’t do). It’s going to be a very long and hard 18-24 months.
Agencies RARELY benefit from higher rates. As rates go up, commissions and bonuses go down. Anyone around when we got hit with the last really hard market around 2006 know that.
So far, this has been a very unprofitable hard market for us. We agents are not (yet) benefiting from higher pricing but are getting the hassle and headaches associated with the market disruption. The customers are squarely blaming us for the non-renewals, terms changes and dramatically increasing premiums but enough of them are either dropping coverage or going to a cheaper solution via an agency that will reduce coverage to get the rate to a ‘budget’ number without regard to protection (some our agency just won’t do). It’s going to be a very long and hard 18-24 months.
Agencies RARELY benefit from higher rates. As rates go up, commissions and bonuses go down. Anyone around when we got hit with the last really hard market around 2006 know that.