For the first time in a long time, I am predicting a hardening in the insurance market. That is reflected in the changes I am making in the Simmonds Business Insurance Index:
I think the insurance marketplace is starting to change. Over the next 12 months we are going to see higher premiums and restrictions on coverage.
Over the past month I have seen underwriters decline accounts they would have drooled over six months ago. My August and July renewals were/are more intense in the negotiations than in recent memory.
I'm getting more aggressive questions from insurers, and I'm starting to see a general attitude of, "We are not really interested in being competitive if it means we can't have the price we want."
At the same time, there are flashes of the soft market. One recent renewal had one insurer 40% below last year.
As the marketplace toughens, it will be more important than ever to have a renewal plan and to negotiate coverage and premiums with insurers.
Agents and insurers have been looking for a hard market for some time - years now. Their incomes will be going up. Workloads too. To the insurance buyers out there I say, "Make them earn it."
| The Simmonds Business Insurance Index™ August, 2011 |
| Renewal Premiums Flat To Slight Increase |
| Renewal Coverages Negotiate |
| Buyer's Outlook Long-Term: Prices Increasing |
I think the insurance marketplace is starting to change. Over the next 12 months we are going to see higher premiums and restrictions on coverage.
Over the past month I have seen underwriters decline accounts they would have drooled over six months ago. My August and July renewals were/are more intense in the negotiations than in recent memory.
I'm getting more aggressive questions from insurers, and I'm starting to see a general attitude of, "We are not really interested in being competitive if it means we can't have the price we want."
At the same time, there are flashes of the soft market. One recent renewal had one insurer 40% below last year.
As the marketplace toughens, it will be more important than ever to have a renewal plan and to negotiate coverage and premiums with insurers.
Agents and insurers have been looking for a hard market for some time - years now. Their incomes will be going up. Workloads too. To the insurance buyers out there I say, "Make them earn it."
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