| The Simmonds Business Insurance Index™ August, 2010 |
| Renewal Premiums -5% to Flat |
| Renewal Coverages Liberal Terms |
| Buyer's Outlook Long-Term: Prices Flat |
Notes for August, 2010
The best way to describe the current insurance marketplace is confused.
Underwriters want more premium. However, competition is preventing them from inching premiums up. At the same time, uninformed buyers are in a mode where they almost expect premiums to go up based on the overall sour economy.
That attitude allows insurers to bump premiums by 5% with very little push-back. However, if there was pressure on the underwriter, the premium increase would go away.
Uninformed buyers are allowing their premiums to increase.
I continue my advice from prior months: If you have not bid your insurance in a few years, get out there. You will pay too much for your insurance this renewal without some competition - even if it is just rattling your agent's cage a bit.
Start the renewal process early - 120 days minimum. If you are not bidding, tell your agent that you expect your renewal rates to drop by 5% and that you want confirmation of this by 90 days before renewal. Without that assurance, go to bid.
No comments:
Post a Comment