Power Producers: Mastermind on the Hard Market Session 1

In this episode of The Power Producers Podcast, David Carothers and guest co-host Josh Gurley discuss the challenges of navigating the hard market in the insurance industry, the importance of understanding reinsurance, and providing accurate information to underwriters.  Episode Highlights: David mentions that it's essential to understand how to converse with clients and prospects about how the hard market comes to exist. (4:37) David explains the impact of Auto Owners' rate increases on clients and workflow in the agency and the need for producers to be proactive in educating clients about market conditions. (7:37) David discusses the importance of using pictures and video in submissions to show that risks are being properly addressed and to build confidence with underwriters. (15:34) David mentions that in his agency, they conduct a baseline risk assessment for every middle market account, and they create a risk management action plan that governs the relationship for the entire year. (20:26) David discusses the importance of risk management in taking the best risk possible for the underwriter. (22:24) David explains the importance of a complete submission, including target premium, loss history, and risk profile, to accurately articulate risk and help underwriters write profitable business. (24:51) Josh believes that auditors are coming to the insurance industry because there are unearned premiums that are sitting out there as a potential asset for them. (31:04) Tweetable Quotes: “It's important that we understand how to have the conversation with our clients and prospects about how the hard market comes to exist. Because we have to keep in mind that the people who buy from us hold us responsible for the ultimate outcome of whatever it is that happens.” - David Carothers “One of the tactics I've always used though, is I like to include as many people from the chosen carrier on the front end and go into a meeting when we're going to talk to them and learn not to close the deal to make sure that everybody's you know, on board with what this risk looks like.” - David Carothers “I love insurance companies, but we have to remember, you know, where our commission sit on their financials, you know? They don't sit as an asset, they sit as a liability, you know? Contingent commissions, they sit as a liability on their balance sheet, unearned premiums, they sit as an asset, right?” - Josh Gurley Resources Mentioned: Josh Gurley LinkedIn David Carothers Florida Risk Partners The Extra 2 Minutes