The insurance industry has always been a reactive industry. Premium rates are adjusted due to inflationary pressures, natural catastrophes creating billions of dollars of damage, supply chain issues and labor shortages across all industries. All these contribute to a tightening of insurance carriers risk tolerance. It isn’t as though they are risk adverse, but they reflect their tolerance for risk in their premiums. We have even seen carriers withdraw from States that are known for greater risk, like Florida and California.

You may be feeling this pressure when you receive your renewal invoice or in some cases an unwillingness of a carrier to even insure you. We know how difficult it is for insurance consumers to add more expense to their already stretched budget, so it is important to work with an independent insurance agent who has a broad stable of carriers. An independent insurance agent can search for carriers to keep premiums more in line with what you paid in the past or at least mitigate the amount of increase that may be experienced.

If you are experiencing the pressure of what our industry calls “A Hard Market,” then you need to consider doing the following:

1. Create a line of communication.
   1. Your insurance broker may be your most valuable ally in this type of tightening market. Lean on their expertise to navigate the market and help you mitigate insurance expense pressures.
2. Assess early.
   1. We find that people wait until the last minute to deal with an increase in insurance premium or a non-renewal. Be proactive and contact an independent insurance broker at least 30 days prior to your policy renewal. They’ll be willing to shop multiple carriers and find options to control your insurance premium.
3. Conduct an insurance review.
   1. Meet with or supply an independent agent with the current declaration page of your policy for a comprehensive review. The agent will be able to identify proper coverage and make sure you are neither under nor over insured.

We hope this information will help you navigate the tightening and increases in premiums associated with the current insurance market trend.