Insurance Journal Forums

I thought I posted this small rant?

Late yesterday I received notice that my E&O carrier will not re-new my coverage in October. I don't know why? I called the broker that handles it but they had already closed for the holiday.

E&O is a PITA to get and costly. Now I get to know what my clients feel when out of the blue they get a non-renewal letter. The same thoughts are in my head, I"ve never had a claim, pay the annual premium in full, gave many thousands of dollars to the insurance company, why the non-renewal? Oh I've heard all the reasons given, sometimes they are reasonable explanations sometimes not.

All that I know is that now I must go fishing for another carrier. Needless to say I am a bit miffed at GE Insurance Solutions/Employers Reinsurance Corporation. I've been in this business for many, many years, I am a one man shop / broker, my business is squeaky clean, my risk selection is good....Errrr!

I spend a lot of time with my family, never set out to be the big boy on the block, enjoy what I do, my book of business is moderate and now I must kneel down at the alter of E&O asking, "Please let me stay in business!"

I've always told my clients that it is about building relationships, with me and with their insurance companies. So when I am on the receiving end of the stick - what am I to tell myself ?

Call Judy Corathers

Judy Corathers
Alliance of Insurance Agents & Brokers
1768 Arrow Hwy Ste 105
La Verne CA 91750
ph 909-392-0836 x12

You can also call Fred Fisher and ELM Brokers

Not sure what state you're in (state of anger?), but try : http://www.leeandmason.com/ins-agents-brokers.html

The Godfather

Some CO's are unfortunately withdrawing from the Market due to losses, claims and bad appellate decisions. We do have a new and competitive Market with and admitted Company - plse give Fred FIsher a call at ELM Insurance 310-322-1301 or email me at ffisher@e-o.com

Regards

Fred Fisher

It doesn't make me any happier but I think I see what has happened to the GE Insurance Solutions. GE Insurance Solutions had 90 percent of its reinsurance renewed and there is a proposed sale to Swiss RE. So they are rearranging their books at GE and making such a business decisions will always be causalities. I am probably one in that group of causalities.


http://www.geinsurancesolutions.com/erc ... _renew.htm

"Our clients have been supportive of our strategy, our focus on underwriting rigor and the proposed sale of GE Insurance Solutions to Swiss Re,"

I absolutely Recommend mr. Fisher. He have helped me with many E-O submissions.

Call Katie Freeman. They're the best. Have been with them for 6 years and they anticipate problems.

Get used to it. You refer to 'relationships'...well, the only relationships that really matter are those between you and your clients because they have choices.

Your so-called 'relationship' between you and your E&O carrier is only in your own mind. At one time they may have cared, but right now you're just an actuarial blip on their Excel chart, and insuring professional liability for the smaller 'mom & pop' agencies is a rapidly shrinking field. I'm not defending it...but look at it from their standpoint. They spend the same amount of time underwriting the risk and collect, what, a few thousand dollars in premium. Sure, you run a tight ship, but how about the single agent broker accross town, who plays fast and loose? One E&O claim from that person with a payout of $300K, and the company is suddenly looking at an upside down loss ratio through no fault of yours.

The trouble with people like you and I is we have long memories when relationships between us and the carriers mattered. I have painfully come to terms with the fact my relationships with both my carriers and my clients, in addition to anyone else I do business with, are fragile and can fall apart at anytime through no action of my own doing.

This has truly become a 'watch out for number one' world and no amount of ranting will reverse these gigantic social and business trends.

I've said my peace.

I feel your pain and have been in a similar situation. Go to http://www.PIAWEST.com
Click on non-members. E & O for insurance agent through CAN Ins., will not require a membership. If you can get E & O with CNA, the rate is unbeatable and the carrier is admitted paper. Small agent in CA with experience are running roughly $2500 annual with a 2500 deductible. I believe even less outside of CA

Our was a little higher

I can agree that an office with 50 employees, because ot their economies of scale, may pay a bit less per head than a mom and pop shop. That doesn't mean that a mom and pop shop isn't profitable. If insurance companies take that view individual auto and homeowners would not exist. One fire on your home is costly indeed but insurance companies are in the business to spread the risk.

I dare say that mom and pop shops may be less likely to have a claim than a 100 person office. The 100 person office will probably have more attrition, it will have people that care less about the office they work for and will have more eomplyees that no matter what, are gone at 5 PM, etc. The problem isn't a problem of assuming / spreading the risk, the problem is computer modeling. Computer modeling has created greater risk in the stock market because pf program selling. It sells a company at a certain price, no matter if the company is an up and coming Goggle or an Enron. It is a number and once that number has been hit, equation and bam...it is done.

Yes, you are correct, gone are the days of relationships with those that we do business with and in whom we place our trust.

The years since 1983, the year I started selling insurance have ticked by and I am now 53 years old. Cynical and tired of what has become of the insurance business.

Hey here is a laugh. For year after year the banks chipped away at the laws so that they could sell insurance and securities. Their banner was they could offer competition in the marketplace. Now Walmart want to do a little banking and the ABA is livid. YEs, the banks may have rolled their way into our field but I want to see them stop Walmart. It is a small giggle when Karma plays her hand.

d's insurance store wrote:Get used to it. You refer to 'relationships'...well, the only relationships that really matter are those between you and your clients because they have choices.

Your so-called 'relationship' between you and your E&O carrier is only in your own mind. At one time they may have cared, but right now you're just an actuarial blip on their Excel chart, and insuring professional liability for the smaller 'mom & pop' agencies is a rapidly shrinking field. I'm not defending it...but look at it from their standpoint. They spend the same amount of time underwriting the risk and collect, what, a few thousand dollars in premium. Sure, you run a tight ship, but how about the single agent broker accross town, who plays fast and loose? One E&O claim from that person with a payout of $300K, and the company is suddenly looking at an upside down loss ratio through no fault of yours.

The trouble with people like you and I is we have long memories when relationships between us and the carriers mattered. I have painfully come to terms with the fact my relationships with both my carriers and my clients, in addition to anyone else I do business with, are fragile and can fall apart at anytime through no action of my own doing.

This has truly become a 'watch out for number one' world and no amount of ranting will reverse these gigantic social and business trends.

I've said my peace.