The Soft Insurance Market is DEAD! Long Live the Soft Market!

Call it collusion, call it conspiracy – or call it a maneuver  to stem a tide of diminishing profits, but Insurance carriers are universally raising Property & Casualty rates.

The days of premium reductions are over. Carriers believe that they must both rebuild their bottom line  and reduce their loss ratios.

No-one is immune and now, more then ever, you need to be advised by your broker of market conditions, coverage changes and program solutions.

Some keys to a successful renewal......

(1) Understand the market conditions and budget accordingly. Anticipate and understand the repercussions of potential coverage and limit changes.

(2) Early commencement of the renewal process - Gathering of underwriting material, loss forecasting, benchmarking, claims reviews, etc

(3) Risk Management and Loss control - Ensure that YOUR risk has a clean and presentable profile.

(4) Tell the story - Your broker should understand your business and have a distinct expertise with companies like your own so as to make the underwriters understand the nature of the risk.

(5) Market leverage - A broker with a large volume of business or capacity in a specific vertical is much more likely to use his/her leverage to get the optimal price.

Simple and Innovative Ways to Control your TCOR (Total Cost of Risk)

Many finance people have trouble figuring out what their Total Cost of Risk is - let alone how to control or reduce it.

Often, your current insurance broker may not have the means nor even understand the means to control and reduce TCOR.

The following are a few simple areas where a broker can in partnership with the finance team effect the TCOR and thus Growth, Cost Containment, Asset Protection and utlimately Business Continuity.

* Coverage and policy audits: To limit the company's exposure to un-covered claims, know what you are covered for and better, what many coverage enhancements are available.

* Benchmarking and CAT Modeling: To ensure that the company is not overinsured OR underinsured - and thus exposed to unpaid claims.

* Claims reviews: Monitoring reserves, safety and back to work initiatives, fraud awareness can go a long way in mitigating loss ratios and thus experience mods.....

* Experience Mod Audits: 90% of mod audits result in return premiums to companies. Don't let the NCCI or other agencies penalize you unjustifiably.

* Classification Reviews: A good broker will dictate to the carrier how his client should be rated - and thus charged. Don't leave it up to the insurance carrier.

* Loss forecasting: A good broker advocate with the right tools, can 'paint' a better loss picture - no matter how detrimental - to the carrier. Again pre-empting the carriers attempts to profit unneccessarily at your expense.