Here's my read of the current marketplace for upcoming business insurance renewals:
Renewal Premiums: -5%
Renewal Coverages: Liberal Terms
Buyer's Outlook: Long-Term: Prices Flat - Soft Market Continues
There is no change in sight for a move from the current insurance buyer's market. We have supply and demand to thank. Simple as that. The capital / capacity in the insurance business continues to exceed demand. The soft economy and investors have created an environment where there is too much insurance chasing the policies being purchased. Supply outstrips demand - prices drop. As an enticement to policy buyers, insurers continue to offer broad terms and coverage.
Yea for the insurance buyer!
I continue to see insureds who are saving 40% in bid situations where the insured has not bid their coverage in over 5 years - it happened three times in December. My 5% reduction in the index is an average for accounts that have been into the marketplace in the recent past.
I repeat...
--Bid your insurance every 3 years
--Work to make your business an exceptional risk
--Be sure you have a great insurance agent
--Negotiate your renewals for better pricing and better coverage
Go HERE for my comments from past months.
Renewal Premiums: -5%
Renewal Coverages: Liberal Terms
Buyer's Outlook: Long-Term: Prices Flat - Soft Market Continues
There is no change in sight for a move from the current insurance buyer's market. We have supply and demand to thank. Simple as that. The capital / capacity in the insurance business continues to exceed demand. The soft economy and investors have created an environment where there is too much insurance chasing the policies being purchased. Supply outstrips demand - prices drop. As an enticement to policy buyers, insurers continue to offer broad terms and coverage.
Yea for the insurance buyer!
I continue to see insureds who are saving 40% in bid situations where the insured has not bid their coverage in over 5 years - it happened three times in December. My 5% reduction in the index is an average for accounts that have been into the marketplace in the recent past.
I repeat...
--Bid your insurance every 3 years
--Work to make your business an exceptional risk
--Be sure you have a great insurance agent
--Negotiate your renewals for better pricing and better coverage
Go HERE for my comments from past months.
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