How are you handling non renewals and large premium increases

[Markthebroker]

Happy New Year all. This is something I think is hitting us all. Probably harder for me as I am in Ca. Obviously it's easier for those of us that are independent and have multiple carriers to go with. For me as an independent broker with lots of markets and good relationships with my clients, it's a relatively easy conversation once I explain the market, and explain the options available. Especially since I honestly do everything I can to find the best options for my clients. Furthermore all my clients are commercial, and they are usually pretty bright and understand what is going on around them, and are fairly logical and unemotional when I explain the options.

I am however interested to hear from others how they are handling this, and how the conversations are going.

 

[Al3x Lee]

I am however interested to hear from others how they are handling this, and how the conversations are going.

Well, first I start my morning with a bottle of Jack Daniels...

Just kidding. It is brutal, though, I write primarily commercial P&C, and things are ugly in your neighboring northern state of Oregon too.

It depends on the client how they will react to different methods of explanation or education. Some think you're just trying to swindle them, while others seem to understand. Most younger clients have never seen a market like this and have difficulty wrapping their heads around it.

Unfortunately, I don't know if there's a catch-all approach to approach this. If the increase is substantial enough, I will try to market the account and present other options to show them it's not specific to a carrier and that I am doing my job.

 

[Markthebroker]

Well, first I start my morning with a bottle of Jack Daniels...

Lolz, that may be the only good answer.

Just kidding. It is brutal, though, I write primarily commercial P&C, and things are ugly in your neighboring northern state of Oregon too.

It's pretty bad here in Ca too, bud.

 

[Al3x Lee]

It's pretty bad here in Ca too, bud.

Oh absolutely, I think CA is worse than Oregon. I quoted earthquake on a rental property in SoCal. $60K AP for EQ a $2million house and I think the deductible was something like 15%..

 

[Policy Monkey]

I meant to post sooner, as this question is now the bulk of my work day, but I was busy explaining to yet another client that his $1,200 HO3 increase is actually normal these days, and that his $3,800 renewal premium is technically below the state-wide average. Worse is when I have to tell them that there is nothing better, or that the only cheaper option is the state-run "carrier of last resort" that maxes out at $100k liability and does not cover any screen enclosures or aluminum porches.

 

[MIGA1626]

Mark,
Your situation is same as mine and I feel the same way. I've been busting my ass the last 18 months to make sure all my clients are taken care of to the best of my ability. I have heard people say that you make the most money in an hard market... that seems like BS I'm still growing at a satisfactory rate and the commission per account is increasing but damn... I would much rather the market stay at 5% increases a year so I can spend my time getting new accounts.

 

[Markthebroker]

I have heard people say that you make the most money in an hard market

Yeah - free advice is usually worth what you pay for it. I usually hear the most nutrition advice from fat people, and financial advice from poor people. I generally find the people with the most helpful wisdom to offer, are the quietest.

There is plenty of money to be made and lost in a hard market. I think mostly the ones at the losing end will be the more established agents, the ones that don't want to do the work to keep the clients, and captives for the most part.

 

[MIGA1626]

Yes there will never be a perfect market in any industry. You have to swim with the tide as it comes.

 

[Al3x Lee]

Yes there will never be a perfect market in any industry. You have to swim with the tide as it comes.

Nicely put, I just hope we all have enough strength to swim in the right direction as this one feels like a strong rip tide lol

 

[Al3x Lee]