The Simmonds Business Insurance Index™
Designed to provide business insurance buyers with a gauge by which to judge their renewals, The Simmonds Business Insurance Index™ is a compilation of data from client renewals, reported renewals, news reports, and producer input. The sources are both national and regional.
The index indicates an overall trend of premium and coverage changes business insurance buyers are experiencing at policy renewal, for all lines of property and casualty insurance.
The "Renewal Premium" section indicates an average premium change across a broad range of insurance buyers. Your own premium change may vary from this based on your industry, your loss experience, and your insurer's appetite for your risk.
"Renewal Coverages" indicates the availability of broadened coverage terms. Liberal indicates that insurers are offering broad terms and expanded coverage features such a expanded liability protection and broad property insurance protections. Conservative means that insurers are reluctant to expand coverage enhancements.
The third indicator measures the overall market trends.
Any insurance buyer wishing to contribute information to be used in the index should contact us at Scott@ScottSimmonds.com.
| The Simmonds Business Insurance
Index™ July, 2010 |
| Renewal Premiums -5% to Flat |
| Renewal Coverages Liberal Terms |
| Buyer's Outlook Long-Term: Prices Flat |
Index History
| Date | Renewal Premiums | Renewal Coverages | Buyer's Outlook |
|---|---|---|---|
| July, 2010 | -5% to Flat | Liberal | Prices Flat |
| June, 2010 | -10% | Liberal | Prices Flat |
| May, 2010 | -10% | Liberal | Prices Flat |
| April, 2010 | -10% | Liberal | Prices Rising |
| March, 2010 | -10% | Liberal | Prices Rising |
| February, 2010 | -12% | Liberal | Prices Rising |
| January, 2010 | -12% | Liberal | Stable |
Notes for July, 2010
The latest round of renewals shows underwriters being more reluctant to credit renewals. I am also starting to see coverage restrictions discussed. The market is certainly not firming up - meaning it is still a buyers market. Underwriters are tiring of getting beaten up.
Any renewal without negotiation will result in premium increases. Let the insurance company determine your price and they will hit you with a higher premium. This is the way of the world, not an indictment of insurance companies. Insurers (and agents) have no incentive to leave money on the table - why would they?
