How to Thrive in the Disrupted Property Insurance Market
Introduction
The property insurance market is experiencing significant disruption, with many carriers reducing their capacity or exiting certain regions altogether. However, amid this challenging landscape, one wholesale broker is seizing growth opportunities and making lemonade out of the situation. In this article, we will explore how this broker is navigating the disrupted property insurance market and capitalizing on unique solutions. We will delve into their three-bucket approach for the commercial sector, their partnership with Berkshire Hathaway, and the strategies they are employing to support traditional Main Street commercial businesses. By understanding their innovative approach, insurance professionals can gain insights into thriving in the face of market disruption.
Growing Amid Disruption in California
While numerous insurance carriers are shrinking their capacity or leaving the California property insurance market altogether, one wholesale broker, London Underwriters, is actively seeking growth opportunities in the state. Daniel Feigenbaum, the CEO of London Underwriters, recognizes the potential for growth in California and aims to solve the problems faced by agents in the region. With a focus on admitted and non-admitted business for independent retail agencies, London Underwriters is positioning itself as a valuable partner for agents seeking unique solutions in this challenging market.
The Three-Bucket Approach for the Commercial Sector
London Underwriters sets itself apart by offering a distinctive three-bucket approach to cater to the small and mid-sized commercial space. While the broker does not handle personal lines business, they excel in providing solutions for the commercial sector. The three-bucket approach encompasses binding authority, brokerage, and insurtech distribution, allowing London Underwriters to address a wide range of risks submitted by agents.
Berkshire Hathaway’s Three Offering
London Underwriters has established a fruitful partnership with Berkshire Hathaway, leveraging their “Three” offering. This innovative solution covers small businesses through a simple, three-page-long policy. It combines property liability, commercial auto, and workers’ compensation coverages, providing a comprehensive solution for small businesses. With Berkshire Hathaway’s significant appetite for growth in California, this partnership has the potential to be a game-changer in the market.
AU Gold: Accessing Lloyd’s of London
As a Lloyd’s of London coverholder, London Underwriters taps into the insurance marketplace through their AU Gold platform. This online program enables agents to quote and bind coverage for builders’ risk, vacant property, and commercial packages. The flexibility and diversification offered by Lloyd’s of London appeal to agents seeking growth opportunities in California. London Underwriters continues to explore ways to collaborate with Lloyd’s to expand their capacity and provide unique solutions to agents.
Domestic Binding Authorities for Main Street Commercial Businesses
London Underwriters also focuses on meeting the needs of traditional Main Street commercial businesses. In cases where their insurtech offerings may not provide suitable solutions, the broker has domestic binding authorities to fill the gap. By partnering with domestic insurers inclined to grow their footprint on the West Coast, London Underwriters ensures that they can address a wide array of risks submitted by agents. Their expertise and relationships with insurers like Nationwide, Allstate, and State Farm enable them to handle smaller accounts effectively.
The Growth Potential for California’s Commercial Property Market
Despite the challenges in the California property insurance market, London Underwriters sees significant growth potential. While fire risk restrictions may apply to specific zip codes, insurers are generally open to expanding their capacity for commercial property coverage. London Underwriters aims to capitalize on this growth appetite and provide solutions for commercial property risks in California. By leveraging their partnerships, expertise, and understanding of the local market, they position themselves as a valuable resource for agents seeking to navigate this disrupted landscape.
Conclusion
In a disrupted property insurance market, London Underwriters stands out as a broker that embraces growth opportunities and provides unique solutions. With their three-bucket approach, partnership with Berkshire Hathaway, and focus on traditional Main Street commercial businesses, they have positioned themselves as a trusted partner for agents navigating the challenging California market. By adopting innovative strategies and fostering strong relationships with carriers, brokers can thrive in disrupted markets and turn challenges into opportunities. Through collaboration and adaptability, insurance professionals can make lemonade out of property insurance disruption.
