FIRST AND FOREMOST, WE HOPE THIS BULLETIN FINDS YOU AND YOUR FAMILIES BOTH HEALTHY AND SAFE.
While we are all living with an incredible amount of uncertainty right now, both in our personal and business lives, one thing we do know for certain: now more than ever, we must stay abreast of change within the insurance market place. To that end, we would like to offer some insights to our retail agency clients and ultimately to our mutually insured clients regarding what we are seeing in the Property and Casualty marketplace.
We will continue to update you as the markets evolve further, but wanted to share our insights so far:
The property markets were already starting to harden in some areas prior to the COVID 19 crisis. The recent pandemic concerns will most likely continue, and we don’t know for how long, thus extending the hardening market as carriers re-underwrite exposures related to the pandemic such as class of business, potential BI (business income) losses, vacancy concerns, as well as potential governmental interaction and reaction.
So, don’t fall into the “Extension Trap”
Reducing GL exposures due to slow downs caused by COVID 19: many clients are asking their agents to request revised premium quotes due to decreases in sales, or other ratable exposures.
Obviously, certain classes of business are being hit harder than others: hotels, restaurants, travel related industries, and hospitality driven accounts are being hit especially hard. Some standard carriers are taking issue with the fact that hotels and other occupancies such as wedding or event venues are now vacant. This may very well result in accounts that brokers could formerly place in the standard market now being forced into the E&S market.
Premium finance might be an avenue to consider for clients with COVID related cash flow concerns.
We know these are unprecedented times. We know that the landscape is changing rapidly and constantly. We want YOU to know that Socius is here for you. Socius (so-see-us): Latin for “partner”. “Socius” best describes our business philosophy: that your success and our success are inseparable.