This hard market is killing me - Commercial P&C

[Al3x Lee]

It seems like every day I walk into the office, another policy is getting cancelled or non-renewed. Renewal premiums are through the roof and I have to market accounts constantly, making it difficult to prospect new business.

Even when I do prospect new business, finding a competitive carrier is always an uphill battle, even on seemingly insignificant risks.

On top of that, finding good account managers is harder than ever.

How are you all dealing with this? Or are you not being hit by it as hard as I am?

 

[Markthebroker]

It seems like every day I walk into the office, another policy is getting cancelled or non-renewed. Renewal premiums are through the roof and I have to market accounts constantly, making it difficult to prospect new business.

Even when I do prospect new business, finding a competitive carrier is always an uphill battle, even on seemingly insignificant risks.

On top of that, finding good account managers is harder than ever.

How are you all dealing with this? Or are you not being hit by it as hard as I am?

I am California commercial only p&c. I am seeing all of this.

Personally, I have started drinking heavily, and have taken up smoking.

Just kidding. I'm pretty established so it's not affecting me that much, but it's definitely the hardest it's ever been. Renewal premiums are increasing, which is nice, but of course I still do whatever I can to find the best scenario for the client.

Feel free to ask any specific questions, or pm me with any issues you're dealing with, because frankly I feel like I'm weathering this thing pretty well, because it's definitely bad.

 

[Al3x Lee]

frankly I feel like I'm weathering this thing pretty well, because it's definitely bad.

Don't jinx yourself! My bad juju might rub off on you But I'm happy to hear I'm not crazy in feeling this way. I'm weathering the storm, but I'm on a rickety boat with no engine and broken sails, just hoping for the best as I paddle to a distant shore that's unseen in the torrential downpour. Hopefully this market calms down before I sink! My book is still relatively young, but large enough that if I can stop the bleeding, I should be able to ride this thing out.

I did find myself thinking today if this insurance thing is really worth it though, if it's going to be like this my whole career, I'm gonna go do something else. I'm only 30

 

[Markthebroker]

Yeah, you sounded like you are still in the growth phase. It's a lot easier to weather stuff like this once you get established, have loyal clients, know the markets, etc.

I've been doing this about 11 years, and this is the worst I've ever seen it. By far.

 

[DonP]

Yeah, you sounded like you are still in the growth phase. It's a lot easier to weather stuff like this once you get established, have loyal clients, know the markets, etc.

I've been doing this about 11 years, and this is the worst I've ever seen it. By far.

State Farm had a 18% increase in my area . People start shopping when they see that . No different than mapd benefits always changing and people being poached . I always say . When your growing your stealing someone’s business and someone’s trying to steal yours .

 

[Markthebroker]

State Farm had a 18% increase in my area . People start shopping when they see that . No different than mapd benefits always changing and people being poached . I always say . When your growing your stealing someone’s business and someone’s trying to steal yours .

Geico shutting down offices and ending phone sales for Ca has gotten me a handful of new policies already, not that I'm really looking for new business frankly. I do feel sorry for those agency owners that bought into Geico and opened offices and then got screwed.

 

[AZDave]

I think this market is just getting started. We are always juggling these pressures but now more shit is being thrown up in the air for us to catch!

Crazy times for sure.

 

[Markthebroker]

I am curious what @Matthew Labb and @marindependent have to say.

 

[AZDave]

What kind of increases are you seeing in the CA Commercial Auto market?

 

[Markthebroker]

I don't write much commercial auto, but oddly I've been witing quite a bit lately. From my limited experience with commercial auto, I'd say rates have roughly increased 50% over the last few years, which seems fair as people are crashing more at higher speeds, and the cars are tremendously more expensive to fix, so frankly the increases seem quite fair to me. Far more than the increases themselves, the biggest problem I'm seeing is all the carriers that will no longer write commercial auto isurance in Kalifornia. Most of them have stopped writing. The department of insurance won't allow them to raise their rates enough to make a profit, so they've just stopped writing completely. I only have a handful of markets left, and I have access to everybody.