There’s no denying the current insurance market is hard – the question is, how hard and what are brokers doing in response? Insurance Business caught up with Lisa Carter (pictured), managing director of Clear Insurance (corporate authorised representative of Insurance Advisernet), who believes it pays to have a head start.
“If you’re working on your renewals early and you’re having those discussions with insurers early, you should know the bad news early and that will give you time to find alternatives,” said Carter. “But if you’re leaving things to the last minute and expecting an easy renewal, then that’s when you can get caught out.”
The insurance boss, whose industry experience spans more than two and a half decades, is braced for further tightening and more restrictions in terms of underwriting appetite. In her view, the market will continue to contract, resulting in fewer options for policyholders.
Carter told Insurance Business: “There’s no doubt about it – it’s super tough out there. And I’ve been through a hard market before, when HIH collapsed. This time I think we’re in for a longer, harder time. I think it’s going to be a good couple of years before we see any light at the end of the tunnel.
“So, now we’re just getting started really early on our renewals, and we’re talking to our clients and giving them information to let them know that the insurance market is tough and that we have to be prepared and we have to provide more information than ever before to insurers.”
The Queensland-based MD stressed that the current market is not one where brokers can go around at the 11th hour, say a week before due date, and ask for a quote. Additionally, Carter sees the value in looking after both sides of the fence.
She explained: “The underwriters are remediating their books, and they have to. That’s just the position that they’re in, and we as brokers also have to understand that and work with them to help them retain the business if it’s a long-term relationship.”
Carter believes working together as broker-insurer-client in what she considers a tripartite partnership will get good results for everyone. Meanwhile, Clear Insurance clients are also encouraged to have risk surveys done and risk underwriting reports completed ahead of time before their policies expire.
“Through our marketing and referral networks, I do presentations and sit on panels where I give market updates,” she added. “And I’m trying to spread the word as much as I can in the business community here in Brisbane that the market is tough, to be ready and stay on the front foot.”
