Quarter One 2023 Market Update: Mark Perkins, President/CEO
“As we walk through 2023, remain vigilant about your insurance purchases and feel free to call our email our team with any questions. Perkins is uniquely positioned as a leading insurance broker -locally owned with global resources.” - Mark Perkins
Over the last several years everyone has felt the impact of a multi-year pandemic and the economic pressures which have caused supply chain disruption, increased demand and inflation. Unfortunately, it has resulted in an overall rise in the cost of goods and services to American families and businesses. It truly has been an unprecedented time in our nation’s history. Consequently, the insurance industry has not been immune to those impacts.
At the time of the publication of this letter, over the past 18 months we have seen just about every insurance company our agency represents institute 2-4 rate increases. Consumers with policies renewing in the first quarter of 2023 have especially bore the full brunt of those rate increases as most rate changes occurred between their renewal in 2022 and 2023.
It has been substantial.
Perkins Insurance continues to counsel our clients about the challenge insurance carriers are facing and why such unprecedented rate increases have become necessary. In response we have been offering options to our clients to help negate, as much as possible, the rate impact to their family or their business. Insurance carriers have struggled mightily since the end of 2021 to make a profit.
Their challenge? Many!
Some of the direct impacts to profitability have been the rising cost on average of claims (claims severity), supply chain demands slowing the claim process down, the increased cost of goods and services during the claim process (inflation), continued frequency in personal and commercial auto, weather related events and claims department staffing challenges to name a few.
Yes, the list is long.
The beauty of having a quality Independent Agent such as Perkins Insurance is beneficial in several ways.
Perkins has been closely monitoring rate impacts in the market and their effect on our clients since late 2021. This was not a new practice for us, but rather a heightened awareness and intentional focus of understanding what was about to happen in the market. We anticipated the impact early on and invested in changes to our renewal policy processing that allowed us to be ahead of the market and begin proactively monitoring renewals, shopping those that were most adversely affected and offering multiple options to our clients who began experiencing those impacts. By investing in those additional resources we have helped our clients save thousands of dollars, mitigate their impact to rate increases where possible and experience a level of service that speaks to our dedication to monitor what is best for our clients at all times in both rate and coverage.
Having a quality independent agent saves you the consumer a lot of time from having to shop the market on your own…going from carrier to carrier to see who may have the best rate.
At Perkins, we represent a number of high-quality name brand insurance carriers. Those carriers that are capable of providing competitive pricing relative to the market, quality claims experience and the financial solvency to be there for our clients when they need them the most.
You may ask, what can I do to help mitigate the impact of rate increases to my family or business? Right now, it seems anywhere we turn that insurance carriers across the spectrum are raising rates. But, you can do a few things to help lower your cost of insurance. First and foremost, continue to practice safe and prudent driving habits. Drive defensively and put away cell phones and distractions. Distracted Driving continues to be a leading cause of vehicle accidents. Secondly, when it’s time to renew your insurance policies, start by having a conversation with your current agent and asking what solutions they can offer you to minimize the rate impact. Some agents will encourage you to “shop the market” and “look at your options.” While we agree, we believe in the value of a strong relationship with your agent first.
Find the agent who:
Can bring you multiple options to the table,
Is quick to show you the work they’ve done on your behalf to find you the most competitive rate for the coverage you need
Is willing to engage you in conversation by listening and learning about what is best for you and your coverage needs. Every individual family and business’ risk tolerance is different, and no single option is the correct fit for all families and/or businesses. Having an agent that can listen to your needs, ask the right questions, tailor coverage to meet your needs and be there for you during a claim is invaluable.
And finally, yes…if you’ve exhausted those steps and still do not feel like you are getting the value you are looking for, then you may need to look around at what other agents or carriers have to offer. In doing so be knowledgeable about coverage terms, how they can help or limit you in the event you have a claim and consider doing business with an agent and company you know and believe you can trust.
As we walk through 2023, remain vigilant about your insurance purchases and feel free to call our email our team with any questions. Perkins is uniquely positioned as a leading insurance broker - locally owned with global resources. We value the opportunity to get to know our clients, what their specific needs are and help tailor coverage suitable for their budget.