Business Insurance Market Tips

  • May 28, 2024
  • 3 min read

Opportunity in the New Market
The new market for commercial lines insurance might be a great opportunity for clients to get better deals and better coverage.

Changing Dynamics
What’s happening? Brokers or agents are now starting to go directly to the insurers to get policies, rather than through a middleman or some type of MGA.

Implications for Clients
What does that mean for you as a client? It means that your insurance agent or broker, if they’re smart, can now procure your insurance policy directly from the underwriter rather than having to go through some third party.

Potential Benefits
That may get you more coverage, it may be cheaper, and it also might be a faster turnaround.

Streamlining the process
The last time you did your insurance, how long did it take you to send all the loss runs and fill out the Accord forms and all the details you needed to get your agent to get you coverage? Some of that might be ending, and here’s why.

Shift from Wholesale to Retail
Retail insurance brokers are going to direct carriers and away from wholesale brokers. And wholesale might seem better, but it’s one step in between; it’s like a middleman.

Advantages of retail brokers
For new submissions and clients, the reason why is because the retail brokers are very good and transparent and retain renewals.

Faster response times
So if you don’t have to go through a broker, you may not have to jump through as many hoops, and you may get faster response times.

Consideration for Renewal
If you are ready for renewal, your policy’s coming up, or you need additional coverage, make sure that you check with your agent to see if they have other options besides the last one that you did, because there may be more coverage options by going directly to the insurance company.

Increased Availability
On any given risk, you could go to 20 markets and get 30 quotes. That’s what we’re seeing right now.
The importance of shopping around means there’s a lot more availability. If your policy is up for renewal anytime soon, make sure that you’re getting good quotes from your agent or maybe shop another agent or broker.

Maximizing Options
If they’ve dealt with you well and treated you the right way, you don’t necessarily want to jump ship, but you just want to make sure that they’re exhausting all the possibilities of your different coverages.

Potential Savings
Because you know every agency has so many clients, they can’t shop everyone thoroughly every single year, so if you’re the squeaky wheel and ask them to look around at some other options, you may find you have either different cage availability or even lower premiums that have materialized in the last year that you can benefit from.

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