No Viable Markets!

[InsuranceAgent411]

I have seen a hard market in my years of insurance however this is a concrete market! From an agent and consumer standpoint the rates for both homeowner and personal auto insurance is unstainable. On top of that I am not even able to shop for my clients. Insurance carriers do not even want to provide a quote or the turn around time is 2 weeks; writing any new business is out of the question. Where are people getting affordable insurance? How are the personal lines agents handling this situation with clients? Feedback is appreciated!

 

[marindependent]

Where are people getting affordable insurance? How are the personal lines agents handling this situation with clients? Feedback is appreciated!

You should move your Book of Bus to California where it is real bad.

"Affordable" is now a speed bump in my search for clients. I dont even quote folks out without starting a financial range - Gut Check discussion. I am seeing lots of home policies transact between $6K and $12K. All Pay Full Pay, All Fees fully earned and there is a Min Earned Premium. Limited Water Coverage, ACV on the Roof, with no Ext Reb Endorsement.

 

[Allen Trent]

both homeowner and personal auto insurance is unstainable.

oh, it is stained, trust me & about to get even more stained

 

[NY independent]

Commissions are reduced, premiums are way up, cancel non-pays are soaring, carriers don't want to grow, many looking to shrink. Educate, educate, educate. The media doesn't cover it because they don't want anyone to know how bad things are.

 

[Allen Trent]

Commissions are reduced, premiums are way up, cancel non-pays are soaring, carriers don't want to grow, many looking to shrink. Educate, educate, educate. The media doesn't cover it because they don't want anyone to know how bad things are.

90% agree. only item I would clarify is that I think carriers want to grow, but there is no incentive for them to grow premiums that are losing them 10-20% of real money when they can instead invest the surplus & make a guaranteed 7-9% on their money with no expenses or claims adjusting expenses, etc.

same is kind of true with all the hedge funds/private equity that were buying up all kinds of insurance agencies, IMOs, heating & cooling companies, trucking companies, etc. Now that they can make guaranteed returns of 7-9% investing, they have slowed down or quit buying up businesses. I assume they are still buying up rental real estate or single family houses turning them into rentals because of the absurd rent they can collect.

 

[Rob Lion]

Wait so I can't make 7 figures in insurance anymore? :/