Property and casualty update: two key sales strategies for carriers to get ahead of the hard market.
We don’t think anyone disagrees that the hard market is here to stay. The upward trend that began in 2018 has added the instability of a pandemic, civil unrest, a regulatory environment in flux and a decrease of private capital supporting reinsurance markets.
We know that carriers are getting ahead by disciplined balance sheet management and by reexamining terms and conditions: coverages, retentions and limits, payment terms, exclusions, all of which translate to enhanced risk selection.
Those with vision however will realize that they can longer rely on their standard flow of submissions to achieve revenue and profit goals. From a distribution perspective, we recommend carriers do two things:
- Improve the quality of opportunities in development. Distribution teams and underwriters will have to unearth accounts at the broker level that fit into the tighter box, an exercise known as broker mapping.
- Increase the value of revenue in the pipeline. At the account level, they must uncover the account’s business objectives. The carrier must be able to demonstrate their value proposition to the account.
It will be mission critical that distribution and underwriting work in concert more closely than ever. These strategies will be necessary from the large deductible down to main street markets. They will also apply to programs, captives and alternative markets which experts believe will see a significant uptick in activity. Those that change rapidly will be well positioned to survive current market conditions and for whatever, dare I say, becomes the new normal.
Sales training and coaching designed for insurance carriers, brokers and TPA’s. Contact Chris Bullick to learn more: (484) 477-9075.