Good Afternoon, Everyone!
I hope y’all are all having a wonderful Spring Break so far. I just wanted to share a couple updates from the past couple of days that display a zig-zag in the marketplace, and how there is sober optimism moving forward into Q2 and on. These two articles focus on the same problem from two very different perspectives. As a business or property owner, these scenarios could play a significant role in your insurance expense. So, as things continue to zig-zag I will do my best to educate and notify you so that you can put your business in the best position for success.
First up: What’s prompting a carrier exodus? | Insurance Business America (insurancebusinessmag.com)
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As we are officially almost 3 full months into the year, the property markets have continued to be an area of challenge as this has “prompted insurers to raise premiums and withdraw from areas deemed high-risk.”
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“A repricing of climate risks has seen global property catastrophe-reinsurance rates rise by as much as 30% at the start of 2024.” From an initial look, those are not the schematics that we want to see as a business in the Greater Gulf Coast region… BUT there is hope that will change.
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Furthermore, property’s poor performance has had a significant impact on all products carriers sell in the gulf coast region – thus businesses have seen themselves looking for a new carrier as many admitted carriers have retreated almost entirely from the gulf coast region both on property & casualty lines…
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As a business owner/insurance manager, this should not scare you. This is why your agent gets to earn a living, give them the information and time to advocate on your behalf!
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So, you are now probably asking, what will everyone do now that all of these insurance companies have headed for the hills.
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Of all the states to do it, Louisianna is leading the charge towards insurance reform. (Yes, I was shocked as well.)
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Louisianna, like most gulf coast states, has had a terrible track record the past 3 years. As a result, they are working to create an environment where both insurers and insureds can win moving forward.
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Everyone hates a bad deal, but I think we can all agree that we hate not having any options — more.
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The critic in the article does pose some legitimate concerns, but I believe this is an interesting development as we expect more states to intercede on their residents behalf moving forward into the future.
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I can’t say I agree with every objective, but one I do agree with is that: “Everybody is dealing with an insurance crisis – either directly or through their constituents, and likely both,” Temple said. “So, they’re looking for solutions.”
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As an agency, Ark is doing our best to put our client’s needs first. So, if you ever have a question or concern about your insurance program – please don’t hesitate to reach out to me and my team. We would love to provide a quick resolution so that you can get back to doing what you do best.
Beyond that, I hope you are all having a great week (or spring break for those lucky few) and I look forward to being at your service come renewal time!
