A number of internal and external factors are affecting market dynamics and adding to the pressures felt in all aspects of the insurance value chain.
Chief among these pressures is a hardening market in which increasing rates are seeing premiums rise north of 50% for customers in some sectors, creating problems for agents and insureds alike.
These challenges mean that conversations around risk placement strategies are going to get much more complicated, but that doesn't mean they should be shied away from — these difficult conversations are essential.
To help these conversations go more smoothly, RPS has brought together four key tips to ease the pain of your next property renewal.
Start Renewal Discussions Early
The increasingly complicated nature of renewals means that insureds need to be brought up to speed as early as possible. They also need to be made aware that they'll face increased premiums at renewal and that those increases could be quite large in some cases. Bad news late is always worse than bad news early.
Education Is Key
Insureds need to be educated about the reasons for the ongoing rate increases, but most importantly, they need to be made aware of what to expect so they can plan accordingly. Here at RPS, we firmly believe brokers are there to educate their customers and ensure that customers are fully aware of the risks they face and how to mitigate those risks.
Use Data to Explain the State of the Property Insurance Market
In a hard market, it's important that agents can give clients appraisals or cost-of-construction scenarios that show precisely why an insurer has insisted on an increased valuation of a property portfolio or a higher premium.
Brokers need to be able to give honest examples and case studies that bring the situation to life, because it's then much easier to explain the state of the market and help the customer understand why everyone is facing these pressures.
Become a Trusted Partner
The most successful agents seek to become a trusted partner of their insureds, rather than just focusing on selling an insurance policy. The increased risks and costs facing the US Property Insurance market means that brokers need to become much more involved in the risk management practices of their insureds.
Those companies that see themselves as best-in-class when it comes to managing their risks will have to find a way to demonstrate that to their insurers, and brokers have a key role to play in that flow of information.
Learn more about what's next for the Property space in the RPS 2023 US Property Market Outlook.
