A recent survey leads The Council of Insurance Agents & Brokers to declare that the commercial property and casualty market has hardened.

“We’ve been cautious up to now about declaring a market turn, but I think it’s reasonable to say that the market has made a hard turn after two quarters of price increases and tighter underwriting,” says Ken A. Crerar, president and chief executive officer of The Council, in a statement. “It’s difficult to predict length and severity, but the market has turned.”

Source: The Council of Insurance Agents & Brokers. Chart prepared by Barclays Capital Equity Research.

The survey goes on to point out how workers' compensation pricing has increased in some cases up to 10%.  Yesterday we pointed out that marketscout reported that the average rate increase for April was 3%, but workers comp was an exception being up 4%.  

  "Workers’ compensation toughened as carriers raised prices or rejected the business. Sixty-eight percent of brokers responding said workers’ compensation prices increased 1 percent to 10 percent in the first quarter of the year. A broker in the Southeast commented, “Workers’ compensation was up with any kind of losses or up just a little even with no losses. Certain classes were not being accepted like they were.” A broker in the Northwest said, “Workers’ compensation increased in pricing or many carriers are non-renewing accounts."

As I keep pointing out to everyone, 2013 is going to be a workers' comp moment, as we watch major rate increases combined with the new New York and NCCI mod split point.  Keep in mind that the 2013 mod uses the claims experience from 2011,2010,2009.  So the only way to reduce the 2013 mod is by recovering past overcharges. By doing so, your clients will not only see an immediate mod reduction but will also benifit from future mod reductions. 

Mod Reductions = Fastest way to be competitive in a rapidly changing market place! & the only marketing tool with no up-front cost but big WOW results…