SPONSORED CONTENT: How to thrive in a hard insurance market
Since 2017, the insurance market has been changing making it harder to place risks without insurers having a comprehensive understanding of the insured risk. This means reduced capacity for some insurers and more detailed risk information being required for insurers to underwrite certain risks. It’s an opportunity for brokers and authorised representatives (ARs) to take a proactive attitude towards risk, show the value of their service and build strong relationships.
In 2022, the insurance market continues to be one of the hardest to place a risk. But it’s also an incredible opportunity for brokers and ARs to show the value of their expert advice and service. See how you can make sure your business thrives during the ups and downs of the insurance cycle.
What makes this a hard market?
A hard insurance market is indicated by the reduced capacity for insurers to underwrite certain types of risks and an increase in premiums. Whereas previously insurers would be able to take on 100% of a risk, they may now only be able to insure a small portion for the same price – with multiple underwriters working on the same business.
This is a trend that began long before COVID-19, believes QBE Senior Partnerships Manager Justin Boyes. He has worked in insurance for 22 years and says this is the hardest market he’s ever seen.
The benefit of a strong relationship with your insurer is “immeasurable”
With a market focused on capacity, having strong relationships with your insurer is “more important than ever”, says Boyes.
“In a soft market, the only thing we’re talking about is price. But when capacity is the consideration, that’s when a strong relationship with an underwriter is essential,” adds Boyes.
John Schroder, National Partnerships Manager at QBE agrees, “The benefits are immeasurable. If you can pick up the phone and talk to your Partnerships Manager or underwriter, you have an inside track on what the risk appetite is – and whether you can even place that risk with your insurer.
Ways you can stay in touch with your insurer include:
- Reading regular communications
- Attending live or virtual events
- Joining e-learning programs
- Doing training such as QBE’s Q Academy
- Keeping up with risk insights
- Talking to your relationship manager
Keep a line of communication open with your customers at all times
Maintaining a strong relationship with your insurer flows into how you communicate with your customers as well. This is key in a hard market, where you must be able to have conversations with your customers about how to best protect their assets.
“In a hard market you are seen as more of an expert than ever,” says Boyes. “Because you must have discussions about why risk mitigation factors such as smoke alarms or sprinklers are so important.”
Continue reading the full article here.
