Competitive Rates

Competitive Rates

Competitive Rates

Average carrier performance 7.50

 

 

Competitive rates are the number-one item brokers look for in a carrier – 70% of this year’s survey respondents listed it as one of their three most important priorities when choosing a carrier. The average score for carriers remained relatively steady year-over-year, dipping slightly from 7.56 in 2019 to 7.50 this year. The most common request from brokers was more consistency. Many brokers acknowledged that the blame for tough pricing conditions doesn’t fall exclusively on carriers, especially with the unexpected challenges caused by the COVID-19 pandemic and market uncertainties.

Even so, a couple of respondents expressed dismay at how their carriers had handled the crisis. “Real disappointment that they raised rates during COVID; our clients are really upset,” said one broker. Others complained that “recent increases have been very high” and “a 20% renewal rate during this time is uncalled for.”Other respondents were more complimentary, describing their carriers’ rates as good, reasonable or improving. A few said their carriers are “very competitive, if it fits their appetite.” Most feedback – and broker frustration – can be summed up by one broker’s comment: “Some rates are competitive, others are not; it’s hard to say what drives them.”