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Why Are We Being Non Renewed
By Our Insurance Carrier ?
By: Thomas M. Kallman
Let me begin by stating that you should
not feel personably responsible if you have recently received notification
of non renewal from your insurance carrier. Most all carriers use
detailed statistics compiled over the last several years to determine
acceptability of risk in any given geographic location or class
of business, and thus feel they have done their "due diligence"
in determining what factors will provide the best underwriting results
for their company in today's environment.
Factors used in determining a current
acceptable profile may include geographic area, proximity to catastrophic
elements like wind and flood, quality of construction, willingness
to abide by loss control recommendations, prior loss history &
results of the same class of business, and specific financial
stability, and availability of reinsurance for this type of risk.
Choices available to most insurers are
limited once the above data is compiled and evaluated and include
some of the following: File for major rate increases which are sure
to be unpopular with both consumers as well as insurance regulators,
lose financial ratings established by companies that report financial
stability grades such as AM Best, or simply non renew mass numbers
of policies in areas causing the potential financial burden. Unfortunately,
the latter choice has become most common in today's market climate.
Some of the above factors used to determine
long term suitability cannot be made palatable by individual policy
holders, however other risk factors can be improved to make you
more attractive as a policy holder.
Some suggestions include: never submit
a claim for a minor first party loss, but rather understand that
you have a long term relationship with your insurer, always be receptive
to ideas and recommendations made by an insurance company loss control
representative, report all third party loss incidents to your carrier
immediately, and include as much documentation regarding the incident
as possible to your insurer, be sure that you have made your
environment safe and free from all possible foreseeable loss,
and in my opinion, value long term relationships with your carrier
and agent regardless of any sudden current incentive to switch coverage.
Thomas Kallman, President of
TMK Risk Management Inc.
Dba Kallman Insurance Agency
PO Box 266736 Weston, Florida 33326.
Phone 954-389-5897. Visit the website at www.tmkrisk.com
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