Insurance Renewal Timelines

[jonny-chicken]

Hey All,

Wondering how far in advance of renewal you guys are getting pricing...

Seems to be pretty last minute for me the past few renewals, and this year is right down to the wire.

I've been told prices are going up, but not by how much yet...

What are you guys experiencing?

 

[loaders]

You would think that your insurance broker would have started the renewal process on your behalf long before it “got down to the wire”. Doing anything at the last minute rarely provides good results. Maybe light a fire under him to get the ball rolling.

 

[jonny-chicken]

You would think that your insurance broker would have started the renewal process on your behalf long before it “got down to the wire”. Doing anything at the last minute rarely provides good results. Maybe light a fire under him to get the ball rolling.

Indeed, I agree with everything you've said here. The fire is burning... haahaaa...

We are going to do things differently next year to avoid this sort of situation.

What kind of time frames have you experienced and/or what do you find acceptable? Do you get a couple of weeks to check out the prices or is it more like a few days?

 

[loaders]

I understand and appreciate your frustration JC. We go through the same thing with our broker when our policies expire on Feb 1. Sometimes we have to call them in mid January to see what's up and their response is..."oh, umhh yes, we'll get right on it." In their defense, the policy is generated before expiry, but we have many customers calling us wanting a renewed certificate prior to the expiry date. As a freight broker, our policies are not quite as price volatile as PL & PD for a carrier, although they have crept up significantly over the last few years, and there are not as many underwriters providing this offering. My advise would be, and I seem to remember Michael Ludwig proposing the same thing is, make your insurance broker your best friend and make sure he/she understands the industry and most importantly, your business.

 

[lowmiler88]

Geee I wonder why they wait till the last minute? Could it be so you don't have a choice? Your Insurance Broker should be as close to you as your banker. We went to a captive almost 10 years ago and it's the best thing we ever did because you are truly master of your own domain. What people have to realize that a captive is only looking for strong companies both safety wise and financially, with ours we are only looking at 30 trucks plus and financials must be provided, plus proof of no Driver Inc.

 

[jonny-chicken]

Geee I wonder why they wait till the last minute? Could it be so you don't have a choice? Your Insurance Broker should be as close to you as your banker. We went to a captive almost 10 years ago and it's the best thing we ever did because you are truly master of your own domain. What people have to realize that a captive is only looking for strong companies both safety wise and financially, with ours we are only looking at 30 trucks plus and financials must be provided, plus proof of no Driver Inc.

I agree, I think leaving it to the last minute is being used as some sort of negotiation tactic, which is pretty crappy...

 

[Nawk]

We're also in a captive and it serves us well.

 

[Freight Broker]

Always take the iniative to contact your insurer well in advance. Last thing you want is "opps sorry we forgot" a week prior to the expiry of your current policy. And then you may as well take the month off as you won't be able to work until they got your renewal info and they've gone to the underwriter etc. Two months in advance start beating on them like a drum.. your livelihood depends on it.

 

[TransAction]

Funny enough I just got emailed from my broker today and we don't renew until Jan....

 

[TRKINSURE]

Hi All, in all fairness the market is in disarray right now. You should be starting the process 90 days out at minimum with your current broker. 4 or 5 months out with a new broker (to allow them to learn your business and setup the proper 'pre-insurance audits').
The insurers won't look at anything prior to 90 days your renewal date which sucks and puts everyone in a bad spot.... i hope they change this.
Old Republic won't price an account until their LP goes through - typically within 2 months to your expiration date. Normally pricing is provided no earlier than 30 days prior.
Northbridge will inspect 2 months prior as well but they could come in even closer to your renewal date, depending on the underwriters workload.
What I've seen seems to be pretty consistent - prices are increasing!

Northbridge - 15% - 25%
Old Republic - 5% - 15%
Intact - 10% - 50%
GCNA - 5% - 15%
Economical - 25% - 200%
Echelon - 25% - 50%

Make sure you're also reviewing your loss run.. realistically every 30 - 60 days. Keep track of open claims and reserves and have discussions with the broker & adjuster on how to close off open claims & reserves if you plan on going to market. Make sure the broker is a part of this conversation and they can translate to the underwriter what's happening (not all u/w'ers and claims people talk).

Take ownership in your process, if you broker hasn't reached out at least 3 months in advance it might be time to find another broker. You can't allow to have your destiny changed because someone was too busy or 'forgot'. I see it all the time, people backed into a corner because of the delay in timeline and now a company is stuck overpaying for insurance because they didn't take ownership in making sure they had proper representation.

90% of my business it taking business away from the other brokers but maintaining the insurer relationship. That goes to show how many companies are being under-served, not but their insurers.. but by their brokers who are getting too complacent.

Food for thought...

 

[Freight Broker]

For some odd reason my own agent was fast as lightning this year. Usually I pretty much have to poke them with a stick before they get my renewal done.. but this year... boom...renewal paperwork over and renewal done in two days.. what a pleasant surprise.

 

[LADYCHAMPAGNE]

Hi All, in all fairness the market is in disarray right now. You should be starting the process 90 days out at minimum with your current broker. 4 or 5 months out with a new broker (to allow them to learn your business and setup the proper 'pre-insurance audits').
The insurers won't look at anything prior to 90 days your renewal date which sucks and puts everyone in a bad spot.... i hope they change this.
Old Republic won't price an account until their LP goes through - typically within 2 months to your expiration date. Normally pricing is provided no earlier than 30 days prior.
Northbridge will inspect 2 months prior as well but they could come in even closer to your renewal date, depending on the underwriters workload.
What I've seen seems to be pretty consistent - prices are increasing!

Northbridge - 15% - 25%
Old Republic - 5% - 15%
Intact - 10% - 50%
GCNA - 5% - 15%
Economical - 25% - 200%
Echelon - 25% - 50%

Make sure you're also reviewing your loss run.. realistically every 30 - 60 days. Keep track of open claims and reserves and have discussions with the broker & adjuster on how to close off open claims & reserves if you plan on going to market. Make sure the broker is a part of this conversation and they can translate to the underwriter what's happening (not all u/w'ers and claims people talk).

Take ownership in your process, if you broker hasn't reached out at least 3 months in advance it might be time to find another broker. You can't allow to have your destiny changed because someone was too busy or 'forgot'. I see it all the time, people backed into a corner because of the delay in timeline and now a company is stuck overpaying for insurance because they didn't take ownership in making sure they had proper representation.

90% of my business it taking business away from the other brokers but maintaining the insurer relationship. That goes to show how many companies are being under-served, not but their insurers.. but by their brokers who are getting too complacent.

Food for thought...

I find your insights very helpful. Any chance on sharing you contact information?

 

[Michael Ludwig]

Hi All, in all fairness the market is in disarray right now. You should be starting the process 90 days out at minimum with your current broker. 4 or 5 months out with a new broker (to allow them to learn your business and setup the proper 'pre-insurance audits').
The insurers won't look at anything prior to 90 days your renewal date which sucks and puts everyone in a bad spot.... i hope they change this.
Old Republic won't price an account until their LP goes through - typically within 2 months to your expiration date. Normally pricing is provided no earlier than 30 days prior.
Northbridge will inspect 2 months prior as well but they could come in even closer to your renewal date, depending on the underwriters workload.
What I've seen seems to be pretty consistent - prices are increasing!

Northbridge - 15% - 25%
Old Republic - 5% - 15%
Intact - 10% - 50%
GCNA - 5% - 15%
Economical - 25% - 200%
Echelon - 25% - 50%

Make sure you're also reviewing your loss run.. realistically every 30 - 60 days. Keep track of open claims and reserves and have discussions with the broker & adjuster on how to close off open claims & reserves if you plan on going to market. Make sure the broker is a part of this conversation and they can translate to the underwriter what's happening (not all u/w'ers and claims people talk).

Take ownership in your process, if you broker hasn't reached out at least 3 months in advance it might be time to find another broker. You can't allow to have your destiny changed because someone was too busy or 'forgot'. I see it all the time, people backed into a corner because of the delay in timeline and now a company is stuck overpaying for insurance because they didn't take ownership in making sure they had proper representation.

90% of my business it taking business away from the other brokers but maintaining the insurer relationship. That goes to show how many companies are being under-served, not but their insurers.. but by their brokers who are getting too complacent.

Food for thought...

I would just like to add that every insurance chimp out there thinks they can sell you truck insurance. Nothing could be further from the truth. Your worst enemy in the insurance business is your buddy that insures your house and your kid's car. Friends are friends. Business is business. Keep it that way.

Do yourself a favour ... reach out to an experienced transportation brokerage firm that is well known in the industry. Don't ever believe that just because you might be a small carrier, a large brokerage house will not want to deal, or deal fairly, with you. Every premium dollar they get gives them leverage with insurance companies which in the end will be used to your advantage, and their reputation depends on them treating you with proper respect and decorum.

Personally, if I didn't already have an excellent broker, I'd be reaching out to TRKINSURE. What s/he's been telling everyone here has been straight up.

 

[TRKINSURE]

I would just like to add that every insurance chimp out there thinks they can sell you truck insurance. Nothing could be further from the truth. Your worst enemy in the insurance business is your buddy that insures your house and your kid's car. Friends are friends. Business is business. Keep it that way.

Do yourself a favour ... reach out to an experienced transportation brokerage firm that is well known in the industry. Don't ever believe that just because you might be a small carrier, a large brokerage house will not want to deal, or deal fairly, with you. Every premium dollar they get gives them leverage with insurance companies which in the end will be used to your advantage, and their reputation depends on them treating you with proper respect and decorum.

Personally, if I didn't already have an excellent broker, I'd be reaching out to TRKINSURE. What s/he's been telling everyone here has been straight up.

Thanks Michael, appreciate the kind words... and you’re right. I’m never too big for the small guys and always willing to give advice to those who are looking for it. Im not on here to sell - only to provide help and guidance.