The combination of the large net underwriting loss and a retroactive reinsurance contract that two large insurance carriers entered into in February of 2017 cause net income to decline by 29 percent in the first six months of 2017 when compared to the same period in 2016.
What Can Insurance Carriers To To Preserve Profitability In Today’s Environment?
In an environment of declining profitability, property and casualty insurance carriers must find ways to strengthen the way that they underwrite. With more competition such as insurtech companies entering the marketplace, the guidelines that some insurance carriers are using to underwrite have become less stringent.
In order to compete with insurance carriers that use apps to deliver a prompt response to customers, some insurance carriers are not being as thorough as they should be with how they underwrite. They’re also finding themselves in situations where they are taking on more risk than they can tolerate to win the business. However, when underwriters place too much emphasis on technology and big data and neglect to complete thorough property inspections, they often end up taking on more risk than they can handle.
Our team at Insurance Risk Services has more than 35 years of experience in partnering with property and casualty insurance carriers to help them underwrite and determine which risks are worth taking. While we are in-tune with the times and use the latest technology to prepare our reports, we also realize that nothing can replace the value that an in-person property inspection offers.
Our team of seasoned professionals offers a wide range of experience, designations, and degrees and puts together the most accurate reports in the industry to help insurance carriers make more informed decisions. Contact us at Insurance Risk Services to learn how we can help you strengthen the way that you underwrite and preserve profitability.
