As policyholders feel the impact of inflationary pressures affecting the insurance industry, brokers find themselves in a unique position to help them understand how insurers are keeping in line with the tough realities of today’s marketplace.
This is according to Anthony Passarelli, president of Modern Specialty Insurance (MSI), who recently shared his insights on the challenges faced by retail brokers and how to deal with hard-to-place risks in an interview with IBTV.
Apart from the rising inflationary pricing, Passarelli said retail brokers are also facing challenges due to heightened consumer expectations, inadequate response in claims situations, and difficulties in recruiting qualified staff.
Recruitment challenges and claims concerns are possibly correlated, he said, noting that many companies are likely facing the same issues.
“I don’t see that the challenges affecting retail brokerages are different,” Passarelli said. “It’s probably a challenge, especially on the recruitment side of qualified staff, that I'm sure other industries are encountering as well.”
Delving into dealing with hard-to-place risks Passarelli said more and more brokers have started to embrace the MGA marketplace in recent years.
“The MGA marketplace has grown exponentially, and our company is a case in point,” he said.
Passarelli emphasized that brokers should utilize it for hard-to-place risks, as well as some mainstream risks.
He also talked of his pride in the team’s underwriting experience and how this has enabled them to understand risks and price them accordingly, especially as MSI expands its product offerings and establishes new company relationships.
“I think brokers can and should appreciate the nimble and flexible nature of the MGAs and our ability to place risks that would otherwise not be handled by standard markets,” Passarelli said further. “I take pride in our team at MSI, and our brokers obviously see our ability to assist them with their customers and will only get better as we go forward.”
Learn more about how brokers can deal with hard-to-place risk by watching the full interview here.
