Remarketing

The topic of remarketing has been a daily discussion at our office, particularly in the personal lines department. All our carrier partners need to take rate on these products, there is no way around it. Reinsurance rates are skyrocketing, material costs and labor costs caught the market off guard, bad legislation in California and Florida and some crazy ass weather have all contributed to a very hard property market.

The question we have in our office is “Do we want to remarket?”

Every insurance commercial on television will tell your client yes, you want to go out there and “get some quotes,” and the truth is (as we all know) most likely the client is going to save if they shop, however is that the best thing for the clients? Is this the best thing for our industry?

Our carriers need take rate because they must fund reserves that have been depleted. If they do not get the premium from the client they already have, they need to sell to a new client, or charge their current base of clients even more to fund the reserve pool.

I think we need to start selling the increases.

1. It makes us a good carrier partner.

2. Why do we want to work harder to make less?