Rising star Patrick Keenan likes to follow the economically critical maritime sector: Risk and Insurance

This Marsh broker has family across the industry and considers their support a key role in his successful career.



Come see the stars! As part of our ongoing coverage of the best commercial insurance brokers, Risk & Insurance®with sponsorship Insurance in Philadelphiaexpands its coverage Rising starsthose brokers who represent the next wave of insurance broker talent.

Look for these advanced profiles at Risk and insurance on the website and in your social media feeds throughout the year.

We caught up with Patrick Keenan, Vice President of Marsh and a 2023 Marine Power Broker finalist.

Risk and insurance: How did you decide to pursue a career in insurance?

Patrick Keenan: I went to Temple University to become an accountant. My cousin got me an internship at ACE, now Chubb, as a financial analyst. I was interning over the summer and I thought, “I don’t enjoy this job at all. But everything everyone else in this company does seems pretty interesting.”

At the end of the summer, as I was getting ready to go back to school and setting up my new class schedule and thinking about what else I was doing and what other potential career paths I could see, I thought, “Well, the management people suggested that risk , that it might be good for me.”

R&I: How did you get into the brokerage side?

PK: From my point of view and my social skills – I’m a public speaker and I like to engage with people, listen to what they’re doing and understand it – it seemed that brokerage would be a good fit for me. And then when Marsh came and introduced himself a little at one of their weekly meetings, I thought, “Wow, that seems like a really good idea.”

R&I: What is your role at Marsh now?

PK: I am a vice president and marine insurance broker. I’m a lead facilitator in many positions and work on mentoring some of my newer colleagues and helping people get on the team and understand the business. It’s been a great career for me and I’m very happy with where I am now.

R&I: What makes the maritime sector attractive to you?

PK: The marine industry really helps the world.

So many things we use in our daily lives are shipped or imported. Our ports and our terminals are thus vital parts of the American economy.

I like to have a pulse on it. And I like to see and interact with sailors and support maritime business.

R&I: Where do you get the information to stay on top of what’s going on in this space?

PK: A handful of publications that arrive in my inbox every morning.

Tradewinds is big; gCaptain is another big one. Every morning I like to look at the headlines and see if anything jumps out. And because Marsh has such a great network of colleagues, resources, and so on, we can travel information incredibly quickly.

R&I: How would you describe your approach to customer service?

PK: One of the most important things we do is make our clients feel like they have a captive audience that has their best interests at heart.

If you miss a phone call, you call right back. If you don’t have an answer, you say, “I don’t have an answer, but I’ll get you one shortly.

A broker who has a very strong relationship with their client, who has a strong relationship with the market, and who is ultimately able to deliver good results, is someone who understands their client’s business, who wants to engage, who understands their client’s pain points and pressures. points. And ultimately, it all comes from a place of listening when your clients are talking or reaching out.

R&I: What drives your desire to improve your ability to serve your clients and dominate the industry?

PK: First, I want to be the best I can be in my role because I want to make sure that I am able to provide for my family and give them the same kind of upbringing and opportunities that my father gave me.

Second, I’m a competitor and I like to push myself. In one of the first meetings I attended, a risk manager mentioned a Japanese mantra kaizen, of continuous improvement. As a 22- or 23-year-old, it hit a nerve for me. So I try to be open to constructive criticism.

And the last thing I want to hear is, “Well, X, Y, or Z worked on this account, and he called back really quickly, and we wish you were more like X, Y, or Z.” I want people to say, “We wish you were more like Patrick.”

R&I: Who were your mentors in the industry?

PK: Ali Rizvi was my first manager when I joined Marsh in the marine group in Houston. He was a truly fantastic leader.

I’m also very lucky to have quite a few people in my family to bounce ideas off of. My cousin Matt McMullin works at Chubb now. He is the one who helped me get my foot in the door at ACE and really set me on this trajectory. He has been a great sounding board for me throughout my career.

My other cousin, Kelly Winning, also works at Chubb and has always been a good sounding board for me throughout my career. And my wife’s cousin, Mike Mulray, is the president of Everest Insurance.

There’s also Martin McCluney, senior marine broker at Marsh. He was a great sounding board and a wealth of knowledge for me.

R&I: What excites you most about the future of insurance?

PK: It’s really neat to see how we incorporate all the technology. For example, at Marsh we just introduced what they call LenAI. It’s basically like a ChatGPT intranet that we can use to discuss things, ask questions, and get feedback from it.

I’m also part of our benchmarking team, our data and analytics team. And as we get more capability in that regard, we get a lot more traction and more capability in a marine segment that historically hasn’t really had benchmarking. It will only continue to benefit our clients and the industry as a whole. &

Joel Berg is a freelance writer and adjunct writing teacher based in York, Pennsylvania. He dealt with commercial and regulatory issues. He can be reached at (email protected).

AXIS Capital suffers losses in Q4
AXIS Capital suffered losses in the 4th quarter



AXIS Capital suffered losses in Q4 | Insurance Business America















Better numbers published for the whole year

Insurance news

According to
Terry Gangcuangco



AXIS Capital it suffered losses in the fourth quarter of 2023.

This is how the insurance group performed in the quarter and year ending 31 December:






Metric

4th quarter 2023

Q4 2022

FY 2023

FY 2022

Net available profit / (loss) attributable to common stockholders

$ (150 million)

41 million dollars

346 million dollars

193 million dollars

Operating profit / (loss)

$ (107 million)

167 million dollars

486 million dollars

498 million dollars

In Q4, AXIS reported $26 million in pre-tax catastrophe and weather-related losses, net of collateral. The company’s gross written premiums (GWP) rose 1% to $1.8 billion. For the full year, GWP rose 2% to $8.4 billion. Pre-tax catastrophe and weather-related losses, net of reinsurance, totaled $138 million.

Segment-wise, insurance operations at AXIS posted an underwriting loss in Q4; insurance underwriting revenues fell by 20% for the year. The reinsurance segment also took a beating in the quarter, with $212 million in underwriting losses. Similarly, a negative result was generated for the year in terms of collateral underwriting.

Commenting on the numbers, AXIS President and CEO Vince Tizzio highlighted the positives.

He said in the message: “This has been a transformational year for AXIS, one where we have further elevated all aspects of how we operate and go to market, and we believe the company is well on its way to becoming a leader in specialty underwriting.

“We are taking advantage of favorable conditions in our selected specialty markets while demonstrating underwriting discipline and strong cycle management. This is evidenced by our operating income of $486 million and a year-over-year improvement in the current combined accident rate of 4.5 points to 91.8%.

What do you think of this story? Share your thoughts in the comments below.

Related stories


Markel’s 2023 annual results revealed
Markel’s 2023 annual results revealed



Markel’s 2023 Annual Results Revealed | Insurance Business America















Insurer describes impact of Vesttoo, Idalia

Insurance news

According to
Only Frost

Markel returned to profit in 2023 after a loss in 2022.

The insurer posted a full year profit of $2.3 billion (2022: loss of $1.2 billion). Earned premiums increased 9% year over year to $8.3 billion for 2023 compared to $7.6 billion for 2022.

“In 2023, we enjoyed excellent returns from Markel Ventures, our investment operations and many parts of our insurance business,” said Thomas S. Gayner, CEO of Markel. “While we continue to focus on some areas of improvement in our insurance operations, our three-engine system continues to support profitable growth.

“Strong operating cash flows from each of our insurance, investment and Markel Ventures engines can now be reinvested to continue growing shareholder value.”

Markel insurance results for 2023

The Markel segment recorded operating revenues of USD 7.3 billion (2022: USD 6.5 billion). Reinsurance operating income fell 5% to $1 billion (2022: $1.1 billion).

Markel’s program services, insurance-linked securities (ILS) and other insurance segment saw operating income fall 43% to $280 million in 2023 (2022: $494 million).

Gross premiums for the year were $10.3 billion (2022: $9.8 billion). The increase was driven by “more favorable” rates and new business growth, particularly within personal lines and property, Markel said in its earnings report.

What were Markel’s annual results in 2023?












(in thousands, excluding amounts per share)

2023

2022

Premiums earned

$8,295,479

$7,587,792

Markel Ventures operating income

$4,985,081

$4,757,527

Net investment income

$734,532

$446,755

Net investment gains (losses)

$1,524,054

$(1,595,733)

Total return (loss) to shareholders

$2,285,344

$(1,205,779)

Diluted net income (loss) per common share

$146.98

$(23.72)

Combined ratio

98%

92%

Source: Markel

Markel sees underwriting profit drop, Idalia notes, impact of fire

Markel saw underwriting profit fall 79% for the year to $132.8m (2022: $626.6m). The Combined Ratio was 98.4%, in 2022 it deteriorated to 91.7%.

The insurer recorded $40.1 million in net losses and loss adjustment expenses (LAE) from the Hawaii wildfires and Hurricane Idalia. Its 2022 underwriting results included $81.9 million in net losses and LAEs from Hurricane Ian and the Russia-Ukraine conflict.

“Excluding these losses, the increase in our consolidated combined ratio in 2023 compared to 2022 was primarily due to a higher loss ratio in both of our underwriting segments,” the insurer said in its annual report.

Markel acquired Vesttoo for $65 million

In addition, Markel noted losses on intellectual property protection insurance written under its professional liability product line due to “higher than expected levels of claims and loss experience.”

In it, the insurer booked $65 million in credit losses related to fraudulent letters of credit to a Vesttoo affiliate as collateral on two policies that Markel believes “represent our full exposure to credit losses on the related collateral claims.”

“We are actively pursuing redress to recover the collateral receivables affected by the fraudulent letters of credit and have no further assigned collateral agreements with Vesttoo Ltd. or its affiliates,” Markel said in a statement.

Markel claims to have reconsidered the construction of the reserve for victims

In the fourth quarter of 2023, Markel conducted a reserve study on “selected” general liability and professional liability product lines, which resulted in an increase in its loss reserves from the prior accident year.

The insurer highlighted its construction business, which it said had “grown significantly” in recent years.

“Across our professional liability books for excess and general liability umbrellas and managed errors and omissions risks, we have found that there is a greater than expected tendency to breach limits below our attachment point, which will push more claims into our tiers,” the insurer said. “Furthermore, the reporting of these claims lags behind historical loss patterns due to court closures and backlogs resulting from the COVID-19 pandemic, in addition to aggressive plaintiff tactics and late claim reporting trends.

“While we have achieved significant rate increases on many of these lines since 2019 in response to increased loss trends, the findings of our study have led us to increase our loss trend factors and therefore our estimate of ultimate loss ratios for our major casualty suppliers. liability, excess and blanket general liability and errors and omissions managed risks in professional liability product lines.”

Do you have an overview of the Markel 2023 results? Leave a comment below.

Related stories


Portrait of Richard Coyle
8 Questions for Richard Coyle of FloodFlash: Risks and Insurance

FloodFlash US Sales Director shares what this MGA parametric flood insurance is all about.

At the beginning of January 2024 Risk and insurance caught up with Richard Coyle, US Commercial Director of FloodFlash.

The following is a transcript of that discussion, edited for length and clarity.

Risk and insurance: Can you give us an overview of your company’s business model to start with?

Richard Coyle: FloodFlash is essentially an MGA offering parametric flood insurance.

We hold Lloyd’s cover. My role in the business is US Sales Director.

We officially launched in the US in 2023 and are working to build our distribution and footprint. I lead a team of business development managers here in the US and now in 2024 we are growing rapidly.

R&I: How does your technology work? How do you monitor flood activity?

RC: We are a sensor-based parametric insurance provider. For us, the sensor is at the heart of every policy. We think this is the best form of parametric flood management technology because you can place the sensor directly on the building that is at risk.

When you get eight inches of floodwater on the sensor, you know that water is flowing into the building at that point and you have a loss, and therefore you get a claim payment.

Whereas with other forms of parametric flood technology, such as river gauges and tide gauges or even satellites, they can often be quite distant from the actual asset you are insuring.

For example, if you have a river or tide gauge, you may be up to two or three miles away from the building you are trying to protect. How do you know it correlates very well with the actual loss on your property?

When I was in my previous role as a broker in London doing a parametric trade, I had to try to sell hundreds of parametric flood insurances using gauges and they didn’t sell because that leap of faith from the customer required that the payout to a gauge two miles away would correlate by losing their building.

It was too big a leap of faith and they couldn’t accept it. Whereas if you put a sensor on a building, it’s so closely correlated that customers are much happier and much more willing to invest in a policy based on that.

R&I: You talked about launching in the US. When was the company first founded?

RC: Adam Rimmer and Ian Bartholomew, the two co-founders, met while working at RMS, CAT’s modeling agency.

Between them, the two have structured billions of dollars worth of parametric CAT bonds, including the CAT bonds that the New York City Metro issued after Hurricane Sandy in 2012.

It was really the CAT binding they implemented for the New York subway system that was the spark for FloodFlash. That CAT bond was structured to pay out $200 million if the water in Manhattan Harbor reached certain levels as measured by gauges in the harbor.

They were a large, sophisticated buyer, so they could get into the CAT bond markets through their captive and buy this form of parametric flood insurance.

Adam and Ian thought, “That’s great, but wouldn’t it be great if this form of insurance was available to the mass market?” The way they decided it was possible, and ultimately what led them to quit their jobs and found FloodFlash, were advances in IoT sensor-based technology.

So what we’re doing at FloodFlash is basically taking that gauge out of Manhattan Harbor and putting it on every single building that we insure.

Once we started selling policies in the UK, the big acid test was the first major storm that hit the UK in February 2019.

That very moment was the true test of the sensor and how it would react. He was very responsive and the claims were paid quickly, or so we thought at the time. Then it was in a week or two; we have now reduced the claim time to hours in some cases.

R&I: Are you primarily in the UK?

RC: We launched in the UK and are based in London. However, compared to 2023, the US market will quickly overtake the UK. There was one day in June when we wrote more premiums in one day than in the first nine months in the UK.

R&I: Can you give us an idea of ​​the economic sectors in the US where you write premiums?

RC: The first thing I would say is that we are sector agnostic. We don’t really care what the occupancy type of the building is; we don’t really matter like a traditional property underwriter. In fact, we are dealing with the probability of flooding at a particular location.

That place could be a nuclear power plant, a sports stadium or a paper mill.

We can insure any sector.

This means we are seeing more activity in certain sectors such as commercial real estate, heavy manufacturing, arts and recreation and the hotel sector. We also began to perceive a much greater interest from public entities – i.e. municipalities, water treatment plants and the like.

R&I: Are there any geographies that you do not engage in in the US?

RC: Not really. In terms of how we are set up, we can sell policies with no minimum premium in 15 states and we can sell policies in the other 33 (contiguous) states with a minimum premium of $25,000.

Places like Hawaii and Alaska are a bit more challenging from a modeling perspective, but we can look at those offers on a case-by-case basis.

R&I: Is there anything about the business or your opportunities in the US that I haven’t asked you that you would like to share with our readers?

RC: Of all the hazards, flood has the biggest gap in protection.

If you look at historical events in the US like Hurricane Ian in 2022, Ida in 2021, the return to Harvey in 2017: $50, $60, $100 billion in losses for Harvey and only 20% of that was covered by insurance . Flood is probably the most difficult peril to underwrite, and that’s actually why FloodFlash was founded: to tackle the most difficult, try to find a niche in the market, come up with a product that solves the problem, and then grow at scale.

This is what we do in the US

We are here to provide flood cover solutions to customers, whether they are businesses or public entities, where the traditional market has either completely turned its back or the terms and conditions that apply to the cover offered are unsatisfactory to those users. the insured.

The market sector in which we compete best is for businesses that are larger and have a higher risk of flooding. The businesses that are trying the hardest to get the coverage or limits they need – that’s really where we see the wins.

R&I: Are there other companies you compete with in the US market and how challenging is it to start planning partnerships?

RC: In terms of our competition in the US, if we look at the parametric versus traditional flood market — which exists separately — our strategy is to compete in areas that the traditional flood market has no appetite for.

As a parametric provider using the technology we have, we can underwrite risk more efficiently than the traditional market. On the parametric side, there are some players in the market who can do parametric flooding, but not with IoT.

Those competitors use the gauges I mentioned earlier or use satellite data. Our view is that sensor-based ones are really the only way to properly minimize baseline risk in a parametric flood policy.

Where we have been quoting against competitors using gauges and satellite data, we have always been the only horse left in the race as clients see that using sensors is truly the most reliable way forward. &

Dan Reynolds is the managing editor of Risk & Insurance. He can be reached at (email protected).

Portrait of Traci Adejeji
8 Questions for CPCU President Traci Adedeji: Risk & Insurance

CPCU President-Elect shares more about her goals, background and hopes for her legacy as CPCU’s first black female president.

Risk and insurance spoke with CPCU’s 2024 President and Chair, Traci Adedeji, about her goals and plans for her presidency.

Adedeji began her term on January 1, 2024. In addition to her CPCU Society role, she is the founder and president of the Positive Paradigm Group.

Adedeji has held various volunteer roles, including leading the CPCU Rhode Island chapter and serving on the board of directors for the Boston NAAIA chapter. She teaches CPCU courses and mentors others to help them earn their designation and find their path.

Adedeji had this to say about her presidency.

Risk and insurance: What do you plan to achieve during your tenure as president?

Traci Adedeji: When I joined the Board of Directors in 2021, I was involved in creating the strategic plan under which we currently operate, so I feel fortunate that one of the things I will be doing as President this year is leading the creation of a plan that pick up in 2025 where the current plan ends.

This is probably the hardest lift of my presidency.

That said, I plan to continue our efforts to grow our membership and increase our member engagement and take advantage of all the benefits the company has to offer.

R&I: Can you share a bit about your journey to this role and why you decided to take on a leadership role at CPCU?

COVER: The short answer to why I chose to take on a leadership role is that I answered a call that came when I was placed in a position to serve.

My first role as a volunteer leader in the Society was on the Board of Directors for the Rhode Island Chapter. I went through various leadership roles at the local level and combined that with committee service for the global company.

This service led to Sharon Koches being asked to be appointed to the Leadership Council in 2021.

And because I didn’t break anything, I signed up for a full three-year term, and I’d like to think that my work and commitment have led me to my current role.

I am grateful for the opportunity.

R&I: How do you see your role in shaping the representation of women of color in leadership positions in the insurance industry?

COVER: I will begin by saying that my opportunity to be the first black woman to serve as President and Chair of the Society in the organization’s 80-year history comes on the shoulders of women like Janet Jordan-Foster of AXIS and Susan Johnson of The Hartford. , to name a few.

It was very powerful to share the stage in DC with Sherry McFadden and Ramya Sunad as we were installed as Society officers for 2024.

We were selected to serve on the Company’s executive leadership because of our talents and strengths. But the impact of the message conveyed in that moment to our members and our industry is important.

Images of three women of color stepping into prominent leadership roles signal to everyone that women of color have their place at the top. This message will motivate other women of color to commit to advancement within their current volunteer leadership roles and be empowered to use these experiences to advance their careers.

The fact that I am a black woman is obvious. But the caveat is that black women are not monolithic and I am in no way speaking for or representing them All Black women. My job is to be as authentically Traci as I can be, and to give space to others to do the same (that is, to be authentically myself – not authentically Traci). (Laughter.)

R&I: In what ways can CPCU become more diverse and inclusive?

COVER: A truly inclusive culture consists of people who are excited about the contemplation and synthesis of ideas that differ from their own. By prioritizing the organization’s goals and being open to diverse ideas, you open yourself up to endless possibilities and operate under a model of continuous improvement.

We do this by challenging what we think and do as an organization and intentionally inviting new people into the conversation.

It could look like having an interesting conversation with someone and encouraging them to expand the dialogue by sharing on INinteract or perhaps LinkedIn, or it could look like encouraging someone to apply for a volunteer leadership role so we can all benefit from their talents.

R&I: What strategies will you use to drive growth at CPCU, especially with a focus on international growth?

COVER: Our company grows when we provide value to our members and partners.

This will require visibility, engagement and communication.

One of the first things we as leaders should ask our members and our sections is “How can we help?” Not every member, chapter or country is the same.

Our current efforts to support our CPCUs in Ghana are a good example of the collaborative approach needed to ensure success in engaging our international members. Our member benefits are not one-size-fits-all, but they are robust enough to be tailored to provide significant value to each individual member.

We have seen positive trends in our membership numbers and this will continue as we amplify our membership growth message and clearly articulate our membership values.

R&I: What advice would you give to new leaders and those looking to take on leadership roles at work and in professional organizations?

COVER: The first piece of advice I would give new leaders is to have a good understanding of the organization’s mission and how their strengths contribute to that mission.

Armed with this knowledge, a leader can confidently advocate when opportunities arise.

Another piece of advice I would give is to not miss opportunities to further develop your leadership skills. Being a volunteer leader in the Society is a great way to develop as a leader.

R&I: What do you hope is your legacy as the first black woman president of CPCU?

COVER: I hope my legacy is one of empowerment, compassion and excellence.

I want anyone who has ever felt marginalized or disenfranchised for any reason to see that there are limitless opportunities in the Society and by extension the RMI industry. I want every person I deal with to feel seen and heard, and I want to pay it forward by making sure every person I engage with is seen and heard.

I want everyone in our industry, even marginally, to take pride in giving their best every time.

R&I: Who or what inspires you?

COVER: I am inspired by the idea of ​​possibility and the power we have to transform each day into what we want it to be.

I’ve been doing a lot of work around “purpose” lately. I almost have it locked and loaded, but what I have so far is Polaris to guide my decisions.

Life can be stressful and there is a lot of ugliness in the world. But there are also so many opportunities for us to be awesome and to support others in being awesome. That’s where the magic happens.

And tapping into that energy every day allows me to end each day calm and excited about what I could accomplish the next day. &

Abi Potter Clough, MBA, CPCU, is a keynote speaker, author and business consultant focusing on Insurtech, leadership and strategy. He has over 15 years of Fortune 500 experience with experience in P&C Operations Leadership, Lean Management Consulting, Digital Communications and Insurtech. As former Chair of CPCU’s International Insurance Interest Group, Abi continues to be involved in many international initiatives and projects. She has published two books on change management and relocation. Abi is available at (email protected).

'Chilling effect' – How did carrier pullouts affect auto and home insurance shopping behavior?
“Chilling effect” – How carrier withdrawals affected auto and home insurance buying behavior



‘Chilling effect’ – How carrier withdrawals have affected auto and home insurance shopping behavior | Insurance Business America















Consumer habits have changed amid rising rates, new data shows

Insurance news

According to
Gia Snape

New data revealed how capacity constraints, exacerbated by carrier exits in several states’ auto and home insurance markets, affected consumer shopping trends last year.

JD Power’s US Property & Casualty (P&C) Insurance Quarterly Shopping List Report showed that consumer shopping rates in Texas, Florida and California declined in Q4 2023. These states have seen significant increases in auto and home insurance rates over the past year.

This trend likely indicates that shoppers in these markets likely found it too difficult or risky to switch car and/or home insurance providers.

Stephen Crewdson (pictured), group senior director of global insurance intelligence at JD Power, detailed the “chilling effect” capacity cuts and rising rates have had on insurers’ buying behaviour.

“In California and Florida, the shop rate for combined auto insurance and home insurance has come down a lot,” Crewdson said.

“The rate of people buying both a car and a home in California has been flat all year and fell in the 4th quarter, and we think that’s because home insurance companies were pulling out of the market.

“So consumers have heard from friends and family that it’s hard to find homeowners insurance right now, and they might say, ‘I’m going to stay with the insurance company I have right now because I’m afraid to go out there and try to switch, I can’t switch anyway.'”

The “chill effect” when buying auto and home insurance

JD Power Q4 2023 Report showed that the quarterly shopping rate nationally fell from 12.3% to 12.0%, with shopping rates falling each month. Auto insurance change rates also fell despite accelerating rate growth in the fourth quarter.

The report also noted the impact GEICOwithdrawal from the market.

“After being the top destination for at least one insurer defector in each quarter of 2021 and 2022, they achieved that in only one quarter in 2023 (Q3 by being the top destination for defectors from USAA),” the JD Power report continued.

“When we look at the geographic trends, we see that consumers in different states are struggling with state-specific issues in addition to collecting rates that have covered the entire country.”

For bundled shoppers (ie, consumers who shopped for both cars and homeowners at the same time), those in Texas, California and Florida shopped in 2023, according to data from JD Power.

But as major carriers announced they were pulling out of the California and Florida homeowner markets, purchases among consumers looking for both auto and home insurance in those states fell. Same-category shopping remained largely flat in Texas, where there was no capacity pressure.

Monoline auto purchases were higher in Florida and Texas than in California (where auto insurance premium increases are just beginning to catch up with recent increases in other states). These trends are mostly flat through 2023.

But JD Power suggests that non-renewals and media attention on carrier withdrawals in California and Florida have also affected buyers of monoline homeowners insurance, as have bundlers in those markets.

“Because insurance companies are pulling out of the home, consumers think I’m not even going to shop at home and I’m certainly not going to stop the car and home together because I’m afraid I can’t change it,” he said. Crewdson.

What is the impact on the insurance market?

How are recent purchasing trends impacting insurance companies? According to Crewdson, consumer reluctance to buy could help the remaining carriers increase retention.

“Insurers that remain in these markets may see increased retention in 2024 as consumers pulled back from shopping at the end of 2023 due to fears of what is happening domestically,” Crewdson told Insurance Business.

However, it can be a different story for new entrants looking to increase their market share.

“It could be a difficult market for a while because consumers aren’t specifically thinking about new entrants when they’re shopping,” Crewdson said.

“They think, ‘I need to lower my premiums, or I need better coverage, or I had a bad claim with this carrier and I want to find a new one.’ (Consumers) may already be turned away from the idea of ​​shopping because of what’s happening in the larger dynamic.”

“If the capacity issues are addressed in those states, then the tide can turn,” he said.

What do you think of JD Power’s new data on car and home insurance shopping trends? Share them below.

Related stories


'Chilling effect' – How did carrier pullouts affect auto and home insurance shopping behavior?
‘Chilling effect’ – How has hauling carriers affected auto and home insurance buying behavior?



‘Chilling effect’ – How has hauling carriers affected auto and home insurance buying behavior? | Insurance Business America















Consumer habits have changed amid rising rates, new data shows

Insurance news

According to
Gia Snape

New data revealed how capacity constraints, exacerbated by carrier exits in several states’ auto and home insurance markets, affected consumer shopping trends last year.

JD Power’s US Property & Casualty (P&C) Insurance Quarterly Shopping List Report showed that consumer shopping rates in Texas, Florida and California declined in Q4 2023. These states have seen significant increases in auto and home insurance rates over the past year.

This trend likely indicates that shoppers in these markets likely found it too difficult or risky to switch car and/or home insurance providers.

Stephen Crewdson (pictured), group senior director of global insurance intelligence at JD Power, detailed the “chilling effect” capacity cuts and rising rates have had on insurers’ buying behaviour.

“In California and Florida, the shop rate for combined auto insurance and home insurance has come down a lot,” Crewdson said.

“The rate of people buying both a car and a home in California has been flat all year and fell in the 4th quarter, and we think that’s because home insurance companies were pulling out of the market.

“So consumers have heard from friends and family that it’s hard to find homeowners insurance right now, and they might say, ‘I’m going to stay with the insurance company I have right now because I’m afraid to go out there and try to switch, I can’t switch anyway.'”

The “chill effect” when buying auto and home insurance

JD Power Q4 2023 Report showed that the quarterly shopping rate nationally fell from 12.3% to 12.0%, with shopping rates falling each month. Auto insurance change rates also fell despite accelerating rate growth in the fourth quarter.

The report also noted the impact GEICOwithdrawal from the market.

“After being the top destination for at least one insurer defector in each quarter of 2021 and 2022, they achieved that in only one quarter in 2023 (Q3 by being the top destination for defectors from USAA),” the JD Power report continued.

“When we look at the geographic trends, we see that consumers in different states are struggling with state-specific issues in addition to collecting rates that have covered the entire country.”

For bundled shoppers (ie, consumers who shopped for both cars and homeowners at the same time), those in Texas, California and Florida shopped in 2023, according to data from JD Power.

But as major carriers announced they were pulling out of the California and Florida homeowner markets, purchases among consumers looking for both auto and home insurance in those states fell. Same-category shopping remained largely flat in Texas, where there was no capacity pressure.

Monoline auto purchases were higher in Florida and Texas than in California (where auto insurance premium increases are just beginning to catch up with recent increases in other states). These trends are mostly flat through 2023.

But JD Power suggests that non-renewals and media attention on carrier withdrawals in California and Florida have also affected buyers of monoline homeowners insurance, as have bundlers in those markets.

“Because insurance companies are pulling out of the home, consumers think I’m not even going to shop at home and I’m certainly not going to stop the car and home together because I’m afraid I can’t change it,” he said. Crewdson.

What is the impact on the insurance market?

How are recent purchasing trends impacting insurance companies? According to Crewdson, consumer reluctance to buy could help the remaining carriers increase retention.

“Insurers that remain in these markets may see increased retention in 2024 as consumers pulled back from shopping at the end of 2023 due to fears of what is happening domestically,” Crewdson told Insurance Business.

However, it can be a different story for new entrants looking to increase their market share.

“It could be a difficult market for a while because consumers aren’t specifically thinking about new entrants when they’re shopping,” Crewdson said.

“They think, ‘I need to lower my premiums, or I need better coverage, or I had a bad claim with this carrier and I want to find a new one.’ (Consumers) may already be turned away from the idea of ​​shopping because of what’s happening in the larger dynamic.”

“If the capacity issues are addressed in those states, then the tide can turn,” he said.

What do you think of JD Power’s new data on car and home insurance shopping trends? Share them below.

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Are you part of one of America's fastest-growing brokerages?
Are you part of one of America’s fastest growing brokerage firms?



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The search is on for the third annual report of Fast Brokerages

Insurance news

According to

Insurance brokers across the United States are encouraged to submit a third-year submission Fast mediation message. It will present the most successful brokerage companies based on growth data for the last calendar year.

Nominations may be submitted by providing the brokerage’s headcount and sales figures for 2022 and 2023. All data must relate to the brokerage’s US operations only.

Participation in this ranking provides opportunities for businesses that want to build their profile in the industry. Winners will be listed in Insurance Business America in May and receive exclusive promotional opportunities to extend this success across multiple channels.

Applications are closing Friday, February 16.


Ameriprise may be close to a major reinsurance deal, CFO suggests



Ameriprise may be close to major reinsurance deal, CFO suggests | Insurance Business America















The current high interest environment is narrowing the gap

Security

According to
Kenneth Araullo

Minneapolis-based Ameriprise Financial may soon use a major reinsurance deal to reduce its exposure to life insurance and annuity risks, a new report revealed.

Think Advisor Report suggested that the development was hinted at by Walter Berman, the company’s chief financial officer, on a recent conference call with securities analysts.

During the call, the analyst asked about Ameriprise’s progress in securing a reinsurance contract for its Retirement and Protection Solutions division, which deals in life insurance and annuities. This question arises in connection with several life insurance companies that have successfully secured blocks of valid life and annuity contracts in recent years, thereby freeing up significant amounts of cash.

Berman acknowledged the company’s awareness of these trends. He pointed out that the current environment of relatively high interest rates is narrowing the gap between what Ameriprise is willing to pay for reinsurance and the rates reinsurers are asking for. This convergence represents a potential opportunity for the company, according to Berman.

The potential move by Ameriprise reflects a broader industry trend where insurers are increasingly moving to sell life policies and annuities that offer limited performance guarantees.

What are your thoughts on this story? Feel free to share your comments below.

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Progressive unveils rebrand for commercial fleet product
Progressive Unveils Commercial Fleet Product Rebrand



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The president of Commercial Lines shares the reasons behind the move

Engine and fleet

According to
Mika Pangilinan

Progressive insurance has announced a rebrand for its large fleet commercial coverage, formerly the trading company it acquired.

The product, which was known as Protective Insurance, will now be named Progressive Fleet & Specialty Programs, the insurance giant said in a press release as part of the strategic integration of the businesses following the acquisition of Protective Insurance Corporation in 2021.

According to the release, the new Progressive Fleet brand aims to showcase Progressive’s expanded expertise in large fleet transportation and specialized insurance programs targeting the transportation and delivery industries.

“This announcement was part of our strategy when we first acquired Protective nearly three years ago,” said President of Commercial Lines Karen Bailo. “Our vision has come to fruition with this announcement, which allows us to promote our complete set of capabilities in the transportation market.”

Prior to the Progressive acquisition, Protective Insurance had a decades-long history of marketing and underwriting insurance products focused on the transportation industry.

Progressive completes its swoop for protection insurance in June 2021. The deal is done worth $338 millionaccording to the previous edition.

“We look forward to coming together as one team and growing the business profitably together,” Bailo said of the deal in 2021. “For now, we will all be focused on providing our customers, partners and clients with the exceptional service they expect. we deserve as we work to decide how best to integrate and operate our businesses to provide greater opportunities for growth.”

What are your thoughts on this story? Feel free to share your comments below.

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