Insurance Assurance Newsletter

December 2010

The Simmonds' Business Insurance Index™ For December, 2010

Here's my read of the current marketplace for upcoming business insurance renewals:

The insurance market "experts" seem to have given up on the marketplace "hardening" any time soon. There have been several articles in the past few weeks predicting that the market will not change in 2011.

The November 15th edition of National Underwriter touts on its cover that the soft market is the new normal.

That may be good news for insurance buyers. I'm not convinced.

The older I get, the more I realize that when the mass of "experts" are saying that something is going to happen, the opposite is most often true.

In the past month I have handled about 15 renewals. Several increased in premium by 2%. Several dropped by 30%. Most dropped by about 10%.

Those that dropped the most had not been out to bid for several years. They were also the best accounts - highly desirable to the underwriters.

I repeat...

Go HERE for my comments from past months.

What To Do In 2011 To Successfully Manage Your Business Insurance

1) Review your exposures to loss and your current insurance coverage. A great tool can be my Insurance Assurance Toolbox that provides the questions you can ask your agent so you are sure you have the right coverage. (Special price of $59 for the digital version now at www.InsuranceBookShop.com. Regular price is $99)

2) Meet with your agent 5 months before your insurance renews. Discuss the insurance marketplace, changes in your business, and your risk concerns. Find out your agent's plan for your renewal.

3) If you are bidding your insurance start at least 4 months before your coverage expires. Identify an agent who can compete with your current agent and insurer. (Get my book, How to Bid Your Insurance as a guide. Special price of $9 for the digital version now at www.InsuranceBookshop.com. Regular price is $12)

4) If you are not bidding, tell your agent that you want your current insurer to provide a premium indication no later than 90 days before the expiration of your insurance so you know that they are going to be competitive. Tell your agent that if you don't have a premium quote 90 days before expiration then you are going to bid your coverage. Do not accept last minute insurance renewal quotes as the way the world works.

5) Continually review your exposures to loss and the risks you face. Regularly use a tool like Scott's Risk List to identify possible exposures to loss.

6) Those things that make your business better are also those things that make you attractive to insurers. Policies and procedures that address accidents, promote safety, improve communications, and spell out the leadership structure of your company all make you a better business and a better risk.

How I Help My Clients

I fix broken insurance.  Uncertain coverage and painful premiums.  Consulting on, but never selling, insurance.

How can I help you?

--Are you unsure of the coverage you have?

--Are you unsure about your premiums?

--Are your policies coming up for renewal and you want to investigate the marketplace?

--Are you unsure of the abilities and work of your insurance agent?

I can help.  Call or email me now.

Insurance Agents

I occasionally work with insurance agents in the review of commercial accounts.  You provide me with a copy of the current policies.  We talk on the phone about the exposures and issues presented by the insured.  I then compile a list of coverage and risk management considerations.  We discuss that list in a phone conversation.  You then have 3 weeks of unlimited email followup with me on the issues raised to further the value you receive from our work together.

You get:

-A second opinion of the work you have done.

-An unbiased extra set of eyes making coverage suggestions.

-The opinion of a long-time insurance expert with a broad range of experience.

Call or email me to discuss what you need and what you want.

Your comments and suggestions are always welcome.

Please Feel Free To Forward This Note To Your Business Associates

We encourage sharing this newsletter with full attribution (including my web address) are included.

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