Selling More During a Hard Market AND a Pandemic!


The end of 2019 began a swing in the insurance industry toward a hard market.  Markets historically swing between soft (lower rates, more liberal underwriting) and hard (higher rates, more conservative underwriting) about every five years.  However, we have had about a 15-year soft market cycle which has seemingly ended with a huge shift rather than a casual swing.

Have you noticed homeowners and auto insurance rates moving up?  This is because of the hardening markets.  This hardening is not limited to one location or even one country, it is has been a global insurance shift.

This hard market has also impacted European outlets like Lloyd’s.  As a new general trend, we are seeing rates increasing and commissions decreasing (in some areas).  Policy terms and conditions are becoming more strict, and underwriting is becoming a bit more conservative than what you may have encountered over the past few years.  Remember that Lloyd’s is a marketplace and not a single insurance carrier.  This can be confusing and perhaps even frustrating at times, but it is also a source of potential opportunity.

Some insurers have required rate increases.  While this may sound disconcerting, they have retained their high standard commission levels.  Thanks to the diverse nature of the Lloyd’s marketplace, alternate sources have made available more competitive rates, but at slightly lower commission levels.  There are now more choices and more opportunities in the market.  This situation may not be available for all occupations or insurance situations, but can be useful on cases where competition is a factor.

But what sales opportunities have arisen due to the lasting Covid-19 pandemic?

Our whole economy is discussed daily on the news, as we eat outdoors at restaurants and wonder how they are staying open (financially), and more.  Financial considerations are on everyone’s mind!  It is an ideal time to talk to clients about their insurance – disability and life insurances especially.

Client not wanting to meet?  No problem, you have the expert information they are seeking.  You have the ability to talk with them on the phone or via ZOOM.  Make it professional.  Set an appointment.  Many doctors are doing this now.  They are not able to see patients in the office, so routine visitors are frequently having house calls via video and virtual conference platforms.

As a professional, you may not be used to this form of selling a client on an idea.  You may prefer to meet in person.  However, you may not have that option at this point, so adapt to this new way of selling. 

We look forward and stand by to offer you our usual outstanding service with new alternate options for making sales more often through more choices during these changing times.

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