HURON — Since 2019, the insurance industry has been grappling with a hard marketplace — such challenging conditions were brought on by a confluence of factors that led insurance companies to reevaluate their positions in the industry.
After all, the increased frequency and severity of claims, growing social inflation issues, lasting complications created by the COVID-19 pandemic, evolving cyberthreats and worsening natural disasters have fundamentally reshaped the insurance market.
A hard market is defined by less competition among insurance carriers, more stringent underwriting criteria, and higher premiums and deductibles. As a result, hardened conditions have pressed on for multiple years, prompting limited capacity, stricter underwriting standards and rising premiums across many lines of commercial, farm, and personal coverage.
With this being said, it’s incredibly important to have a local, qualified insurance team, like American Trust Insurance, (ATI) which can help clients analyze their business, understand their exposures and establish a suite of customized insurance policies to protect your most important assets. The ATI team will also thoroughly explain your policies, notifying you of any additional considerations to keep in mind.
“In order for insureds to successfully navigate the constantly evolving insurance market, it’s important to consult your ATI Insurance Team who understand your personal and business goals best, as they are here to help you plan for unique risks and advocate on your behalf,” said Preston Steele, ATI Owner/CEO. “You need insurance professionals who can tell your story to insurance carriers in a way that will best position you at renewal time. You also need to work with insurance professionals who know the dynamics of the current insurance market cycle and how to navigate a hard market successfully. Additionally, you need insurance professionals who fully comprehend your industry and how to provide targeted loss control solutions. Remember, in these challenging times, American Trust Insurance is here to provide the insurance guidance and expertise your business needs.”
It can sometimes seem as if the forces determining your insurance rates are beyond your control.
But, as an insurance buyer, it’s important to know how your premiums are calculated, what trends influence the market and what you can do to get the best price. Many consumers are curious to how insurance rates are established.
Here are some key factors that may influence insurance rates:
• The coverage you are seeking—The forms of insurance you are seeking, as well as the details of such coverage (e.g., limits of liability and value of the insured property), will affect your insurance pricing.
• Your size—As a general rule, the more employees, family members, vehicles, etc. you support the more you will pay for your insurance.
• The industry in which you operate—Certain industries carry more risk than others. In general, businesses in these sectors are more likely to file insurance claims. As a result, businesses involved in risky industries tend to, on average, pay more in insurance premiums.
• The location of your home or business—Your location will also influence your insurance rates. If you are located in an area prone to certain natural disasters, insurers may determine that your home or facility is more at risk for property damage. This increased risk will translate to higher premiums.
• Your claims history—Your claims history—which you can control—has an enormous impact on whether your rates go up or down. That’s where implementing a solid risk management plan will help steer your pricing in a more favorable direction, both now and in future renewal periods.
• Your risk management practices—Now more than ever, conducting a careful assessment of your unique exposures and establishing effective, well-documented risk management practices can make your establishment more attractive to insurance carriers. After all, having a robust risk management program, with the help of ATI, in place reduces the likelihood of costly claims occurring and minimizes the potential losses your business could experience from an unexpected event.
The following are five key components of a successful risk management strategy:
1. Pinpoint your exposures and cost drivers.
2. Identify the best lost-control solutions to address your unique risks.
3. Create a solid business continuity plan, to account for disasters and other unpredictable risks.
4. Build a company culture focused on safety.
5. Manage claims efficiently to keep costs down.
In addition to implementing the above risk management strategies, ATI has a knowledgeable Risk Management Department devoted to assisting in employing risk mitigation programs.
“ATI is dedicated to proactively working with our clients to analyze unique risk exposures and assist in implementing safety initiatives to help reduce claims, losses, and associated costs,” said Steve Lincoln, Director of Risk Management. “It’s incredibly beneficial for our ATI team to meet with individuals and businesses to empower risk prevention efforts. The return is exponential, and it is just one way that ATI can provide you with the most reliable, responsive and respected service in the industry.”
Remember, the insurance landscape is complex, fortunately, your partners at American Trust Insurance are diligently monitoring the market throughout the year and will keep you informed of any changes that might affect your home, family, or business.
For additional information to schedule a review of your insurance program please contact ATI at 605-353-2800 or email@example.com.