Navigating Middle-Market Pricing Hikes

Lately, middle-market businesses (those that typically pay premiums upward of $75K) are finding it difficult to secure reasonable commercial property and auto insurance. This is pushing many of them to pursue new insurance solutions for the coming year. 

What’s Driving Middle-Market Property and Auto Prices? 

In its Q2 2023 Property and Casualty Market Survey, the Council of Insurance Agents and Brokers (CIAB) reported that commercial property insurance premiums jumped 18.3% — higher than any other increase across all lines. Rising reinsurance costs, the uptick in weather-related claims, and soaring property values are all partly to blame. 

The upward trend is also evident in the commercial auto insurance market. CIAB notes that commercial auto premiums have consistently grown for 50 consecutive quarters, with a 10.4% increase in the second quarter of 2023. 

How Agents Can Support Their Middle-Market Clients

Amidst these market pressures, retail agents can step in as a valuable resource and reassuring partner, helping their clients strategically plan for the year ahead. According to a recent article by Program Business, there are several key ways retail agents can support their middle-market commercial customers in their search for insurance options: 

1. Maintain open channels of communication: Now, more than ever, mid-market insureds need to feel confident that they have an open line of communication with their agents. By checking in more frequently throughout the policy term, agents will have a better idea of any shifting needs and concerns and will be able to more thoroughly explore options leading up to policy renewal deadlines.
   
   
2. Take an active role in evaluating risks and options: Well in advance of renewals, agents should be thoroughly evaluating their clients’ current insurance programs. In addition to looking for key cost drivers, agents should be double-checking that coverage limits and current deductibles are still appropriate — keeping in mind the effects of inflation and any business operation changes. From there, agents can discuss with clients whether their current program aligns with their evolving business needs.
   
   
3. Strategically optimize coverage and costs: Some clients may think their only option to combat rising insurance premiums is to reduce their coverage and increase their deductibles. In these situations, a savvy agent can help their clients see there are often better options for controlling costs. This might include, for example, working alongside the client and their carrier to implement proactive risk-management measures that can lower costs in some areas. 

Read the full article for more details and tips. 

Discover how MiniCo’s specialization and exclusive programs can help safeguard your clients’ mid-market businesses amidst evolving market challenges. Our dedicated program teams offer niche underwriting prowess and flexibility to provide customized solutions for industries including self-storage, nonprofit and social services, agribusiness, construction, adult residential facilities, and more. Contact our experts for more information.