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COMPETITIVE RATES
Carrier performance: 6.99
FIVE-STAR CARRIERS
The competitive rates category experienced a notable decline from last year in terms of carrier performance, falling from an average score of 7.40 in 2017 to 6.99 this year. Carriers’ shortcomings in this area were particularly disheartening to brokers, 71% of whom named competitive rates as their most important criteria when choosing a carrier.
Sustainability, or the lack thereof, was the hot topic among brokers, who are universally frustrated with carriers’ rate swings. “Rate increases across the board” and “some classes are just not competitive” were among the comments from dissatisfied brokers. Others felt carriers need to be savvier about offering more competitive prices to renewal clients and when considering rate discounts for prospective clients. “Rate reductions are used by producers to prospect accounts,” one broker said. “This is not going to change, but be mindful of who you drop rates for.”
Some brokers did voice satisfaction about their carriers’ competitive prices, but also mentioned that those rates are not maintained across all lines of business. One respondent described his carrier as “historically competitive” but said there’s growing concern over increased auto rates, which appears to be a trend. Another broker noted that personal lines coverage is becoming more a challenge for clients as carriers increase home and auto rates across the board. That said, several brokers praised their carriers for attempting to be competitive if and when they can: “Always willing to take another look to offer the best rates possible,” said one respondent.
