The Council of Insurance Agents & Brokers (CIAB) says it believes commercial insurance rates are stabilizing. It notes the words “stabilization” and “moderation” are being tossed around quite frequently by insurers and those paying attention to insurance rates.
Clients and agents — however — aren’t using the same words.
Research from the CIAB shows the clients are concerned about rate hikes and what they will look like in the future. They — rightfully — ought to be concerned. Rates in the fourth quarter of 2022 rose on average for the 21st consecutive quarter. Though it’s a slight drop from the third quarter’s 8.1%, the hikes were an average of 8%.
The report is titled, the Q4 Commercial Property/Casualty Market Index. Respondents for the survey are top clients and agents.
In their part, agents doing insurance sales are looking at “enhancing customer experience.” They say that because it is usually the agent that has to be the bearer of bad news to a client when a price hike is coming.
That “enhancing” gets really difficult when a client faces a 20% to 25% increase.
One agent’s comment wraps that dilemma up in a nutshell. “We have the opportunity to educate our clients on what is happening in the marketplace and to prepare them for the ever-changing coverage and premium implications of this ‘interesting’ insurance market,” the agent said.
Source link: Insurance Journal — http://bit.ly/3J9VnjX