August 8th, 2023
To some people (I won’t name names), shopping is a competitive sport! They can go at it for hours and sometimes days! And yes, they usually walk away with some great deals in their shopping bags, but for me, just the thought of that is exhausting.
My most memorable shopping experience was when I tried to buy a new truck. Unfortunately, it was during the pandemic, and of course, there was a vehicle shortage. Not only did they not have the features I was looking for, but they wanted me to pay the sticker price! Hello, my name is Rob Tuscano, and I hate paying more than I (think I) should.
I was hanging out with a bunch of insurance producers this week, and I heard from several that this is one of the toughest markets they have experienced in their careers. Prices continue to go up, and people may wonder if they are getting a deal or just being taken advantage of. And that means policyholders are shopping! Many carriers are raising prices, pulling out of classes or segments of the market, and tightening up their underwriting. Some have good reasons for doing this, too. Insurance carriers are paying more for losses than they expected. And the tail on these losses (how long it takes to settle) is growing! I am watching 10-year-old claims being settled for ten times what they were reserved at.
While rising prices and shifting underwriting are a disruption to your clientele, it can also be an opportunity to attract new customers. Knowing what is reasonable and who you can partner with to provide insurance solutions is key to turning shoppers into buyers. At the Tuscano Agency, we strive every day and in every market to provide wholesale insurance solutions along with a first-class customer experience.
I don’t think there is any class of business that is not affected by this market, but I can tell you that we are consistently writing contractors, especially trade and building. We have excellent markets for all kinds and sizes and experience of contracting accounts, and we have plenty of in-house authority, which makes business even easier to write. When we get into some of the more high-hazard classes, we have expert underwriters who will go out to the market to get your client the best coverage and pricing options. Umbrella business has also been tougher to place lately, but Tuscano has myriad markets and a great deal of success placing these risks too.
Lastly, I want to single out environmental business – contractors, consultants, and energy-related risks. These types of accounts require knowledge of the related industry. It’s our good fortune that we have people with the expertise and technical skills to place this business. If you have a particularly tough environmental risk, give Linda Bobro a call.
I have one housekeeping note to pass along. As you know, we have been closing at 3 PM on Fridays through the summer. But on Friday, August 11, we will be closing the office at noon for our annual all-agency summit. It will be a fun weekend as our staff comes together. (If you are a Facebook fan there may even be pictures shared!) Thanks for understanding!
Just remember, you never regret paying a little more and getting great customer service, but you will always regret going cheaper and getting a really bad customer experience. And to that I say…
Live your insurance life without regret!
Stay cool, and have a great day!