Ongoing Market Changes Mean Big Opportunity in Excess TransportationMarch 1, 2016
Matt Domitrovich is Senior Vice President and Transportation Team Leader at Worldwide Facilities’ Chicago office. He is an excess auto and excess transportation expert.
When insurance carriers non-renew or scale back significant lines of coverage, it can be a challenge for the agents and brokers we work with as well as their insureds, who must re-evaluate their excess transportation coverage in preparation for non-renewal and choose new plans at different premiums.
But if you’re just looking at the negative consequences of change, you’re missing the full picture. The truth is that these market changes, as difficult as they can be, often bring major opportunities as well—for carriers, insurance agents, and insureds alike. Here’s an overview of where those opportunities can be found.
For the carriers
When there’s a major market upheaval, often the reason is that the market needs to shift. Big market changes are often a good thing for the industry as a whole in addition to the carriers, because the premiums adjust to a more realistic place. That can mean a difficult change for insureds over the short term, but in the long term it creates more sustainable premium pricing and a healthier insurance environment.
For the agents and brokers
When markets change, it frees up opportunities. Under past conditions, insureds may have had very little incentive to switch. Now, insureds have to switch—and insurance agents have the chance to compete on more than price in selling to them, because premium pricing is moving to a level that’s more sustainable across the board.
For the insureds
When one carrier offers policies at a price point that’s more attractive than what others offer, it creates an environment where insureds make their decisions about which carrier to use largely based on that premium price—and they may not take a second look at the policy for some time once it’s in place.
When the market shakes up like this, insureds now have to take a real, evaluative look at their present risk exposure and assess their ongoing risk. With large market changes, insureds get the opportunity to update their coverage and get insured for the risks they face now, which may have changed since they first purchased their last policy.
In addition, the added stability that comes with these changes can also result in more consistent pricing, making it easier for insureds to budget for insurance costs.
Market changes are a normal part of industry fluctuations. They have happened before, and they will certainly happen again. That said, they can be a challenge, especially in the short term. In the long term, however, there’s plenty of opportunity for insureds and agents as well as carriers. Worldwide is here to help our partners navigate the markets and minimize the pain of transition for insureds.
During periods of market fluctuation, a relationship with the right wholesale brokerage can be essential. Worldwide’s excess transportation team is best-in-class, and our extensive relationships with carriers and dedication to customer service mean that we’re perfectly positioned to help our partners and their insureds come out of any period of change in a strong place.
For more information, contact Matt Domitrovich at firstname.lastname@example.org or (312) 465-5304.