An Insurer’s Business Cycle

Every industry and every business has its own business cycle. In insurance, this cycle is what can cause premiums to go up or down.

As revenues and costs and capital needs fluctuate, prices or premiums also fluctuate. It’s part of “the art of doing business.” I have insurers that I used to write a lot of business with, but they have not been as competitive in the last couple of months with their premiums. Likewise, some of the insurers I have quoted a lot of business with recently were not as competitive several months ago.

This is one of the main reasons I chose to be an independent agent rather than being captive with one insurance company: I don’t have to ride that company’s roller coaster. I have options for my clients.