Surviving The Competitive Commercial Insurance Market

Surviving The Competitive Commercial Insurance Market
The property and casualty insurance market is more competitive than ever, with new players entering the already crowded field thanks to the rising stardom of Insurtech. While residential insurance has taken the brunt of the hit, commercial insurance providers will need to fine-tune their practices to continue to thrive in the new era.
Customers desire a faster and smoother path of obtaining insurance, tempting some to abandon important steps in the process such as insurance inspections. With less information available for your underwriting team, this may not be a risk you wish to take.

Strict Vs. Lax
For insurers intent on maintaining their slice of the market pie, lowering standards to increase their customer base may be one of many tempting options. While this may seem a viable strategy for establishing relationships and customer loyalty, the accompanying risk must be carefully monitored. Insurers with large operations in areas hit hardest by increased weather-related events need to be doubly discerning, as a fractional increase in customer base may not outweigh the risk and claim potential when disaster does strike. Adopting a lax approach to underwriting will almost always end poorly in an industry where risk is everything. Foregoing insurance inspection entirely during the underwriting process is another high-risk move taken by some carriers to bolster numbers that can absolutely destroy profitability in the long run.

The Value Of The Commercial Inspection
An in-person commercial insurance inspection will be paramount to identifying unacceptable problems that are high-risk and harmful to your bottom line. Data and drones are being used to replace the traditional insurance inspection to the potential detriment of carriers. An in-person inspection will be able to detect and document hazardous property conditions, including those that leave the property owner open to a lawsuit. The ability to identify common and special hazards, low-quality construction, substandard maintenance, and other concerns are the primary benefit of conducting a complete inspection as part of the underwriting process. This information only becomes more critical when considering relaxing strict underwriting policies. Data can claim anything, but a seasoned inspector will be able to thoroughly investigate and confirm the state of the property. The inspection process is invaluable with regard to risk assessment for commercial properties.

Competitiveness does not require taking unnecessary risks or cutting corners on the most important aspects of your business. For carriers, finding a way to differentiate yourself from the competition through service and relationship building is all it takes to remain a step ahead. Fine-tuning your underwriting policies and a thorough risk assessment procedure work hand in hand to achieve lasting and profitable goals.

Our dedicated team at Insurance Risk Services offers rigorous commercial property inspections and accurate underwriting reports to keep your business profitable. With more than 35 years of partnerships within the property and casualty industry, we are confident in our ability to deliver unparalleled service enabling you to make informed underwriting decisions. Contact us today to learn how we can help you minimize risk and maximize profitability.

We’re delighted to announce that Insurance Risk Services will rebrand to Davies in the near future.

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