The link below will take you to an article published by the IIABA where I strategize on the growth in the environmental insurance industry has created a problem for insurance carriers being able to hire knowledgeable and experienced underwriters. And that is causing a problem for retail agents that work directly with carriers.
ERMI has witnessed plenty of cases where retail insurance agents working directly with inexperienced underwriters, are not negotiating proper coverage and endorsements. This means an increased E&O exposure for the retail agent.
The growth in the environmental insurance industry has placed greater emphasis on making sure insurance agents are working with knowledgeable and experienced specialty wholesalers like ERMI. By teaming up with ERMI you are assured the broadest marketing efforts, allowing you to deliver the best coverage at a competitive premium.
Other issues ERMI has witnessed when insurance agents work directly with carriers.
- This has happened with various carriers over the years, but for example, a few years ago, AIG decided to re-evaluate their environmental book of business which meant they were non-renewing a substantial amount of policies. This left many agents with no alternative markets, which meant ERMI saw a nice increase in new business submissions. In remarketing the AIG renewals with alternative carriers, ERMI was beating expiring AIG premiums by an average of 35% and adding coverage enhancements.
- As insurance carriers enter and exit the marketplace, a specialty wholesaler will have relationships with a variety of environmental insurance carriers so they can effortlessly move insureds and make sure they are with the appropriate carrier/s.
- As the market begins to harden, what ERMI experienced in the last hard market cycle were carriers either exiting the market or restricting coverages. A wholesaler will be able to search markets to make sure you are with the proper carrier at a competitive premium for the market conditions.
- If you are not working in the environmental space daily, as emerging contaminants (PFAS, Surfactants, Glyphosate, Silica, Legionella…) continue to surface, an environmental wholesaler will coach you on assisting your impacted insureds. See attached ERMI Environmental Play Book.
https://www.iamagazine.com/markets/read/2020/01/27/why-experience-is-crucial-in-environmental-liability-insurance