Insurance Agency Management,
Insurance Agency Growth Strategies,
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Anyone who has ever been on a family car trip has heard that question. At least a million times, right?
So have insurance companies and agents with respect to Homeowner’s rates in the southwestern United States. The question gets asked by customers, insurance departments and all of us in the business. As we continue to cast a worried eye at the skies and answer every carrier call with trepidation, insurance agents have probably asked the question more than anyone.
In a recent issue of “Insurance Journal” Aon Benfield reported the results from their study, “Homeowners ROE Outlook: 2013 Update” which showed while the industry’s ROE was basically flat compared to a year ago that rate movement is beginning to create opportunity in many states.
Rates are up 7.7% across the country in the last year. Between January 1, 2012, and July 1, 2013, rates have gone up 10.1% in Oklahoma, 10.6% in Arkansas and 9.7% in Kansas. This is good news for OAA members. Even better news is that from 2009 to 2012 rates in Oklahoma are up 30.9%, in Arkansas they are up 21.5%, and in Kansas rates have increased 18.6%. While this is painful for homeowners much of the increases are just bringing pricing back to levels they were at in 2005.
We have actually had conversations in the last three months with several large homeowner’s writers that have said they feel good about where their rates are in Oklahoma. We haven’t heard that about our other two market states but hopefully rate adequacy is on the horizon there as well.
When will we get there (to rate adequacy that is)? Soon! At least I hope so…