Hard Market Realities
To The Editor:
I read Sam Friedmans July 8 column "A View From The Press Box" ("Agents Caught In Hard Market Crossfire," page 25), with bemusement.
As an ex-company commercial lines underwriting manager with 34-and-a-half years in this business, who started his retail independent agency from scratch 22 years ago, I offer the following:
There are a number of realities of our "profession." Some are relative newcomers, having evolved over the past 25-to-30 years, while others have remained unchanged for decades. The "newcomers":
The insurance industry, for the most part, has been increasingly guided by non-insurance professionals, eventually resulting in a severing of the multi-generational underwriting talent evident in almost every property-casualty underwriting department–a wealth of talent and experience available to the benefit of both insurer and agent.
A de-emphasis on the funding of technical training and reliance on computer-rating by insurers. Most underwriters today know little of the rate-making process or the component parts of a rate. Therefore, they are forced to treat the underwriting of commercial lines the same as personal lines–namely, as a commodity. I cant remember the last time I could discuss some deductible underwriting with an underwriter.
The above ultimately brings us to where we are today–superficially-trained underwriters who have no choice but to be sellers of commodities, not underwriters of risk.
Where does this leave the agent/broker? The professional, the technically-grounded producer loves a hard market and generally prospers during such times. Hes selling coverage and know-how during the best of times and has the least burden of adapting to changing times.
To paraphrase one of "Websters" definitions–a "professional" is one who looks after his client first. The key to an agents success in writing new business and retaining quality business is, and always has been, the clients perception that hes being looked after.
Agents and brokers have little impact on what insurers do. All we have to do is regularly communicate with clients as to the state of the industry, and recommit to them that, relative to what the market is doing at any time, the coverage and premium being offered will be reflective of the best out there. Most quality insureds dont ask for anything more.
These are not brutal times for independent agencies. Its a time of great opportunities for professionals. I dont subscribe to the widespread independent agent hand-wringing. In the almost 35 years Ive been in this business, theres always something we have to deal with. The particulars may change; the dynamics dont.
Gene Slavin
Chief Executive Officer
Slavin & Associates Insurance Brokers
Rancho Cucamonga, Calif.
Reproduced from National Underwriter Property & Casualty/Risk & Benefits Management Edition, August 19, 2002. Copyright 2002 by The National Underwriter Company in the serial publication. All rights reserved.Copyright in this article as an independent work may be held by the author.
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