Excerpted from a Miami Today story.
For a variety of reasons, 2017 is a great year for businesses to be in the market for insurance.
“There is substantial competition in the market now,” said Gaston Blanch, a director with Franklin Street Insurance Services who deals mainly with real estate insurance. “It’s chaotic, because there is surplus capacity that needs to be deployed.”
New companies have entered the fray and established insurance companies “aren’t chasing rates down, because they expect to lose business,” Mr. Blanch said. Some are walking away from renewals, he said. “It defies logic.”
He cites a client whose policy renewed in April. The client had filed $400,000 in fire, electrical and water claims over five years and still saw its premium reduced from $200,000 per year to $180,000, a 10% decrease.
“For business owners, it’s good,” he said. “In fact, I would tell anyone who’s getting a flat renewal that they are leaving money on the table.”