What You Can Do If Your Company Has Had Poor Loss Experience
Changing Insurance Market Hits Some Companies Hard
The “soft” commercial insurance market that persisted from 2005 through 2011 lulled many Property and Casualty insurance buyers into believing that insurance was inexpensive and always available. The market has turned in the last year or so, and now many buyers are finding that they are facing premium increases and, for accounts with poor loss experience, they may even have trouble finding insurers willing to cover them.
You Can Do Something About Poor Loss Experience
Insurance pricing cycles may be frustrating to you as an insurance buyer who feels you are at the mercy of a market over which you have no control.
But it is important to focus on what you can control. Safety and loss prevention can have a significant impact on your loss experience, which will result in more affordable premiums and most likely give you more options during “hard” markets. Over the long-run, your insurance costs are driven up or down depending on your loss history, so the best way to reduce your cost of risk is to avoid preventable losses.