{"id":25794,"date":"2023-04-02T20:47:07","date_gmt":"2023-04-02T20:47:07","guid":{"rendered":"https:\/\/curepossession.com\/?p=25794"},"modified":"2023-06-01T17:50:43","modified_gmt":"2023-06-01T17:50:43","slug":"repo-industry-facing-a-perfect-storm-of-insurability","status":"publish","type":"post","link":"https:\/\/curepossession.com\/repo-industry-facing-a-perfect-storm-of-insurability\/","title":{"rendered":"Repo Industry Facing a Perfect Storm of Insurability"},"content":{"rendered":"<h3><span style=\"color: #000000;\"><strong><em>\u201cIn 2023, insurers are faced with a significant challenge to close the rate gap in order to meet their growing cost of capital.\u201d<\/em><\/strong><\/span><\/h3>\n<p><span style=\"color: #000000;\">Facing increasing economic pressure, insurance carriers are on the look out for ways to reduce underwriting losses by increasing rates, reducing coverages, tightening underwriting guidelines and dropping lines of business that aren\u2019t profitable. This hyperfocus on loss management may put many in the repossession industry at risk of losing important coverage.<\/span><\/p>\n<p><span style=\"color: #000000;\">An <a style=\"color: #000000;\" href=\"https:\/\/www.insurancejournal.com\/news\/national\/2023\/03\/30\/714476.htm\">Insurance Journal<\/a> article was published online on 3\/30\/23 with the following headline:<\/span><\/p>\n<p style=\"text-align: center;\"><span style=\"color: #000000;\"><a style=\"color: #000000;\" href=\"https:\/\/www.insurancejournal.com\/news\/national\/2023\/03\/30\/714476.htm\" target=\"_blank\" rel=\"noopener\"><strong><em><span style=\"color: #ff0000;\">Near $27B Underwriting Loss in 2022 \u2013 largest for US P\/C insurers since 2011<\/span><\/em><\/strong><\/a><\/span><\/p>\n<p><span style=\"color: #000000;\"><strong>Key Quotes from the article:<\/strong><\/span><\/p>\n<ul>\n<li><span style=\"color: #000000;\">\u201c<em>The [insurance] industry recorded a net underwriting loss for 2022 of $26.9 billion, <strong><u>more than six times<\/u><\/strong> the $3.8 billion underwriting loss in 2021. The underwriting loss in 2022 was the largest the industry has seen since 2011<\/em>.\u201d<\/span><\/li>\n<li><span style=\"color: #000000;\">\u201c<em>The insurance industry is being hammered by increasing input costs, natural catastrophes, legal system abuse, and resistance in some states to adequate rates,<\/em>\u201d said Robert Gordon, senior vice president, policy, research &amp; international for APCIA.<\/span><\/li>\n<li><span style=\"color: #000000;\">\u201c<em>In 2023, insurers are faced with a significant challenge to close the rate gap in order to meet their growing cost of capital.<\/em>\u201d<\/span><\/li>\n<li><span style=\"color: #000000;\">\u201c<em>Hurricane Ian and the effects of inflation resulted in major losses for property insurers last year, <strong>while accident severity continued to plague personal and commercial auto lines<\/strong><\/em>,\u201d said Neil Spector, president of underwriting solutions at Verisk.\u00a0<\/span><\/li>\n<\/ul>\n<p><span style=\"color: #000000;\">Why is this article important to you?\u00a0 The article is important to anyone who has insurance, be it personal, <strong><u>but especially commercial and in the repossession industry<\/u><\/strong>, because it means insurance companies are going to look for ways to reduce their underwriting losses. And how this is done will likely impact you in some way.\u00a0 Insurance companies reduce underwriting losses by increasing rates, reducing coverages, tightening underwriting guidelines and dropping lines of business that aren\u2019t profitable.\u00a0 Ever heard of a hard insurance market?<\/span><\/p>\n<p><span style=\"color: #000000;\">Many people who we are now seeing applications from are people who had a single claim in 2021 or 2022 and are now finding themselves non-renewed in 2023.\u00a0 The problem these companies are encountering is that many have jumped from carrier to carrier or have been placed with different carriers every year by their insurance agents chasing a lower premium.\u00a0<\/span><\/p>\n<p><span style=\"color: #000000;\">So as the article references with the insurance industry being hammered by increasing input costs (costs of repair, replacement, litigation etc.) and accident severity plaguing personal and commercial auto lines, the cost of claims is increasing while premium volume is decreasing.\u00a0 This is a perfect storm of insurability.<\/span><\/p>\n<p><span style=\"color: #000000;\">What can be done?\u00a0 Well, the best thing you can do is proper and effective risk management and training.\u00a0 Reducing risk a\/k\/a \u201c<strong><em>Removing the liability, before removing the vehicle<\/em><\/strong>\u201d (to quote our tag line), increasing training, adhering to insurance company guidelines regarding things like driver age and experience, not chasing the lowest premium dollar at all costs &#8211; all help to keep your loss ratio (ratio of what you have paid in vs. what the carrier pays out) in better balance.<\/span><\/p>\n<p><span style=\"color: #000000;\"><a href=\"http:\/\/www.repo23.com\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"alignright size-medium wp-image-25513\" src=\"https:\/\/curepossession.com\/wp-content\/uploads\/2023\/02\/REPO2023_post_HDR223-300x165.jpg\" alt=\"Detroit is Calling! REPO2023 is Coming\" width=\"300\" height=\"165\" srcset=\"https:\/\/curepossession.com\/wp-content\/uploads\/2023\/02\/REPO2023_post_HDR223-300x165.jpg 300w, https:\/\/curepossession.com\/wp-content\/uploads\/2023\/02\/REPO2023_post_HDR223-768x424.jpg 768w, https:\/\/curepossession.com\/wp-content\/uploads\/2023\/02\/REPO2023_post_HDR223.jpg 952w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a>Quick shameless plug here, but risk management, driver training, case law and more have always been cornerstones of the <span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" href=\"https:\/\/rsig.com\/\" target=\"_blank\" rel=\"noopener\">RSIG<\/a><\/strong><\/span> program and are all center stage at <span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" href=\"http:\/\/www.repo23.com\/\" target=\"_blank\" rel=\"noopener\">REPO2023<\/a><\/strong><\/span>, hosted by <span style=\"color: #ff0000;\"><strong><a style=\"color: #ff0000;\" href=\"https:\/\/rsig.com\/\" target=\"_blank\" rel=\"noopener\">RSIG<\/a><\/strong><\/span> and <strong><a style=\"color: #000000;\" href=\"http:\/\/alliedfinanceadjusters.com\/\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #ff0000;\">Allied Finance Adjusters<\/span><\/a><\/strong> in Detroit this June.\u00a0 <strong><a style=\"color: #000000;\" href=\"http:\/\/www.repo23.com\" target=\"_blank\" rel=\"noopener\"><span style=\"color: #ff0000;\">Registration is open<\/span><\/a><\/strong> and discounted registration fees are still in effect!<\/span><\/p>\n<p><a href=\"https:\/\/rsig.com\/\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-17358\" src=\"https:\/\/curepossession.com\/wp-content\/uploads\/2018\/12\/RSIG_larg_bnnr_1024x239-1024x239.jpg\" alt=\"\" width=\"640\" height=\"149\" srcset=\"https:\/\/curepossession.com\/wp-content\/uploads\/2018\/12\/RSIG_larg_bnnr_1024x239.jpg 1024w, https:\/\/curepossession.com\/wp-content\/uploads\/2018\/12\/RSIG_larg_bnnr_1024x239-300x70.jpg 300w, https:\/\/curepossession.com\/wp-content\/uploads\/2018\/12\/RSIG_larg_bnnr_1024x239-768x179.jpg 768w\" sizes=\"(max-width: 640px) 100vw, 640px\" \/><\/a><\/p>\n<h2><span style=\"color: #000000;\"><span style=\"color: #ffffff;\">Repo Industry Facing a Perfect Storm of Insurability &#8211; <a style=\"color: #ffffff;\" href=\"https:\/\/rsig.com\/\">Recovery Specialist Insurance Group<\/a> &#8211; <\/span><a style=\"color: #000000;\" href=\"https:\/\/curepossession.com\/hot-topics\/11592-2\/recovery-specialist-insurance-group-rsig\"><span style=\"color: #ffffff;\">RSIG &#8211; <a style=\"color: #ffffff;\" href=\"https:\/\/curepossession.com\/?s=repossess\">Repossess<\/a> \u2013 <a style=\"color: #ffffff;\" href=\"https:\/\/curepossession.com\/?s=Repossession\">Repossession<\/a> \u2013 <a href=\"https:\/\/curepossession.com\/?s=%22Repossession+Agency%22\"><span style=\"color: #ffffff;\">Repossession Agency<\/span><\/a><\/span><\/a><\/span><\/h2>\n","protected":false},"excerpt":{"rendered":"<p>\u201cIn 2023, insurers are faced with a significant challenge to close the rate gap in&#8230;<\/p>\n","protected":false},"author":1,"featured_media":25795,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[17,1190],"tags":[717,125,576,468,220,7,905,133,765,221,105],"class_list":["post-25794","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-press-releases","category-rsig","tag-claims","tag-insurance","tag-lighthouse-insurance","tag-recovery-specialist-insurance-group","tag-repo-insurance","tag-repossession","tag-repossession-agency","tag-repossession-association","tag-repossession-industry","tag-repossession-insurance","tag-rsig"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/posts\/25794"}],"collection":[{"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/comments?post=25794"}],"version-history":[{"count":2,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/posts\/25794\/revisions"}],"predecessor-version":[{"id":26469,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/posts\/25794\/revisions\/26469"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/media\/25795"}],"wp:attachment":[{"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/media?parent=25794"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/categories?post=25794"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/curepossession.com\/wp-json\/wp\/v2\/tags?post=25794"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}