Managing Risk for Tomorrow, Today
Hardening the Excess Market
Nov 8, 2023
Jeff Kleid, FounderVCL Risk, discusses the impact of increasing rates in the excess liability market on business owners. The podcast explores the evolution of the excess market and the shift from a mathematical-based business to a creative industry. It also highlights the effects of inflation on the insurance industry and emphasizes the importance of managing risk creatively.
10:26
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Quick takeaways
- Hardening the excess market is a significant issue for business owners, with higher rates cutting into their margins.
- Factors such as liberal tort liability environments and slow claim service contribute to the challenges in the excess market, leading to increased rates and tough renewal meetings.
Deep dives
The Problem of Hardening Excess Market
Hardening the excess market has become a significant issue for many business owners in the industry. Rates in the excess market are higher than before, cutting into business owners' margins. The primary auto and property sectors are particularly affected. Business owners often receive their renewal options at the last minute, leaving them with limited choices and little time to make decisions. Carriers are constantly competing to offer the cheapest quotes, perpetuating a race to the bottom. These challenges and the lack of a working layer in the excess market contribute to the current difficult and uncertain market conditions.
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