THE ELEPHANT IN THE ROOM - ITS OVER - END OF THE WORLD

[TexasAgentLJ]

Just wait.

Do you believe the state will stop requiring auto insurance, or that lenders will stop requiring home insurance? Or that people will all choose to buck the rules en masse?

The biggest threat I can see is some major player like Progressive leaving the state. Then the rest of the other companies will need to do something to throttle their new business numbers. If that happens, the flip side is that people will be stuck with their existing carriers and retention will go up.

I've been around the industry for a long time in multiple markets. The opportunity never goes away, it just shifts. Michigan had plenty of agents who were doing okay in the early 2010's, after the Great Recession, after the auto companies imploded, with historically bad insurance laws.

 

[Markthebroker]

Do you believe the state will stop requiring auto insurance, or that lenders will stop requiring home insurance? Or that people will all choose to buck the rules en masse?

The biggest threat I can see is some major player like Progressive leaving the state. Then the rest of the other companies will need to do something to throttle their new business numbers. If that happens, the flip side is that people will be stuck with their existing carriers and retention will go up.

I've been around the industry for a long time in multiple markets. The opportunity never goes away, it just shifts. Michigan had plenty of agents who were doing okay in the early 2010's, after the Great Recession, after the auto companies imploded, with historically bad insurance laws.

Ok, well sounds like you've got it all figured out.

 

[TexasAgentLJ]

Ok, well sounds like you've got it all figured out.

No, I don't. I don't know what's going to happen and I don't know exactly what moves I'll have to make. I'm sure there will be some discomfort. Did anyone really become self employed thinking it would be a straight line from A to B for 40 years?

But the guys like you who are shouting the sky is falling are not helping anything. I have a hard time believing that WWII didn't kill the insurance industry, the Carter economy didn't kill the insurance industry, the 08/09 meltdown didn't kill the insurance industry.... but somehow this will?

If people are truly that pessimistic, I guess they should quit insurance and go get a 9-5 government job with a pension?

 

[Markthebroker]

No, I don't. I don't know what's going to happen and I don't know exactly what moves I'll have to make. I'm sure there will be some discomfort. Did anyone really become self employed thinking it would be a straight line from A to B for 40 years?

But the guys like you who are shouting the sky is falling are not helping anything. I have a hard time believing that WWII didn't kill the insurance industry, the Carter economy didn't kill the insurance industry, the 08/09 meltdown didn't kill the insurance industry.... but somehow this will?

If people are truly that pessimistic, I guess they should quit insurance and go get a 9-5 government job with a pension?

It's going great for me. I have plenty of appointments, premiums are going up, and my retention is the highest it's ever been.

Not so great for the personal lines guys, or the smaller boutique agents.

But if the biggest threat you see is some major player like Progressive leaving the state, then you've got nothing to worry about.

 

[Lee Vena]

This is beyond a "hard" "market". This is a meltdown. Have we as society just been wrong about the true level of risk in our day to day lives? Just the insurance rate increases alone are enough to through the economy into a recession. I was told by an E/S broker that "we aren't even in a hard market yet". WTF! What is about to happen? How can this go on?

I would tell you to calm down a bit, this pops up every once in awhile and then goes away.

OMG THIS! I hate to be all conservative and red pilled but it has gotten out of control with people feeling like they are owed something. You guys should really read Ray Dalio's book "Changing World Order". It explains the socio economic cycles of Nations. At the end of economic cycles before everything falls apart the divide between those who have not and those who have (alittle more) argue that either they have nothing and deserve way more and the ones who have feel like they have worked really hard and actually deserve more for their hard work. CLASSIC SIGN OF THE TIMES. Fortunately if we can come out the other end of this relatively unharmed, the cycle repeats and we go through a period of prosperity. Last time this cycle was where it was now was the 1930s. After everything was straitened out we had a massive economic boom in the 40s-60s and everyone got a long well with each other.

A little too dramatic for me.

 

[Al3x Lee]

I have a hard time believing that WWII didn't kill the insurance industry, the Carter economy didn't kill the insurance industry, the 08/09 meltdown didn't kill the insurance industry.... but somehow this will?

Yeah, well, were any of those events preceded by Papa John promising his day of reckoning?

 

[Markthebroker]

I would tell you to calm down a bit, this pops up every once in awhile and then goes away.

Really, when has the market been like this?

A little too dramatic for me.

Too dramatic for you? Uh huh. It's pretty dramatic for my friends that own State Farm offices that are pretty much not allowed to write insurance. But don't let their ability to run a business or feed their families inconvenience you.

 

[marindependent]

Really, when has the market been like this?



Too dramatic for you? Uh huh. It's pretty dramatic for my friends that own State Farm offices that are pretty much not allowed to write insurance. But don't let their ability to run a business or feed their families inconvenience you.

I do not know anyone in California Ins Industry that would not characterize the current state of insurance as anything less than dramatic.

 

[Markthebroker]

 

[marindependent]

"Yes Mam, that is correct - your old premium was $1,974 and the new offerings are $6,599 or $10,070" ....

"No Mam, most of the coverages are inferior with the new insurer options" ....

"Why am I being so monotone you ask - Im sorry trying not to be too dramatic"