Trends in Insurance

Tony Procopio, Vice President at Haylor, Freyer & Coon, recently spoke at a seminar and discussed the "Trends in Insurance". Below is a summary of Tony's comments:

Some of the interesting findings are that most carriers have rebounded well this past year and have continued to price aggressively. Overall, they are attempting to get increases on renewal business, but aggressively pricing new business.

We have seen pricing come down significantly for those clients who have excellent experience and good credit standing. There is also a more competitive approach available to contractors for all lines of insurance including the Workers Compensation. The most significant change in rating has been with the Workers Compensation in NY. Companies now use a Loss Cost Multiplier (LCM) to apply to the rates. This factor can differ by over 50% from one company to another.
As we go into 2010, it is expected to continue, but some resources caution that the market could change toward the end of 2010. It will depend on some contributing factors such as a natural disaster.

Most believe we will continue to have a "soft market" in 2010, and if a "Hard Market" was to come, it would be gradual, and not across the country and with every industry.

In my 24 years of experience, I have never seen the marketplace so competitive/cut throat. It is also more important now to have a broker that understands the market and Terms and Conditions of the policies that are offered to contractors. There can be limitations or exclusions. It is important to not just look at price, but also at the terms and conditions of the policy/quote.

There are also very competitive Captive programs available to Contractors. Over the past 5 years, there has been a growing trend of more contractors joining or forming a Captive. If prices should go up, I would expect more contractors to take this alternative.

It is important to also discuss the level of experience and support we offer at Haylor, Freyer, & Coon, Inc. Our staff prides itself on the ability to write and service all types and sizes of contractors. We also offer in-house Claims and Loss Control Specialist. These are important in supporting and maintaining the lowest cost of insurance.