The "Hard Market"

This year we are all experiencing the challenges of operating insurance organizations in a “hard market” to varying degrees. Depending on the line of business, the state, and the geographic proximity to areas with greater exposure to weather driven perils, the task can be even more difficult. For some of the younger members or our association, this might be the first “hard market” they have ever experienced. Escalating premiums, more restrictive underwriting, and lack of availability in the most severe cases, means professional independent agents must work harder and smarter to deliver value to their personal and commercial insurance clients. It is in these turbulent market conditions that independent insurance agents excel and outperform other distribution segments of the insurance industry. The combination of experience, expertise, access to multiple carriers and alternative markets, enables independent agencies to competently meet the needs of most clients through the inevitable ups and downs of insurance markets.

Independent agents also have a distinct advantage over their competitors in the marketplace as members of the Insurors of Tennessee and the Big “I”. The association works to keep members informed about key topics via its various media outlets including the Tennessee Insuror magazine, The Bulletin, e-mailers, and social media channels. As we all know, staying current about the latest insurance news at the state and national level is key to our ongoing success.

From a legislative affairs and advocacy perspective, “hard markets” historically create pressure on legislative bodies to “do something” about the price of insurance, underwriting actions taken by companies or the availability of some lines of insurance. Indeed, at times public outcry can push legislatures to act. Under pressure, such legislation can result in unintended outcomes including greater disruption of insurance markets over the long-term. The work of our Government Affairs Consultant, Trey Moore at the state level and the staff of the Big “I” advocacy staff in Washington D.C. helps to inform and educate legislators about complex insurance and risk management issues. They seek to improve proposed legislation or have misguided legislation set aside to prevent negative outcomes for the industry and the consumer. The participation of the Insurors of Tennessee Legislative Affairs Committee and members across the state is also a vital part of the advocacy process.

Another way the association serves members in difficult market conditions is by providing access to insurance programs offered by the Insurors of Tennessee and through programs available via the Big “I” Markets at the national level. I encourage you to explore the options available to you via your association membership by contacting Stephen Holmes at sholmes@insurors.org or visiting our website at www.insurors.org.

One of the keys to overcoming challenges and thriving no matter the state of insurance markets is to make certain you have the insurance knowledge to develop the solutions clients need for even the most complex of challenges. As I have mentioned before, knowledge fuels success in our business. The Insurors of Tennessee offers a comprehensive catalogue of seminars and courses designed to keep agencies on the leading edge of insurance and risk management topics. The resources available can help you become a subject matter expert and thought leader on insurance, risk management, risk transfer and risk mitigation. Be sure to go to our website at www.insurors.org to learn more.

In closing, I am very pleased to tell you that the Insurors of Tennessee is in an exceptionally good place today. At a time when associations across many different industries are struggling in the wake of the pandemic, we are growing and thinking forward as we celebrate the 130th Anniversary of this historic association. Your board has been busy with its oversight responsibilities and working to make sure we are on a path to future success. I appreciate the board’s commitment of time and talent in service to this association. I am also grateful to our members and associate members who are the foundation of the Insurors of Tennessee. To each of our company partners, I thank each of you for your contributions and support in helping to power our association forward. Together, we continue to build an organization that we can all be proud of across the state of Tennessee.

I hope to see you at the Insurors of Tennessee Annual Convention being held in Knoxville on October 12-24, 2023. If you have not yet registered, please do so at your earliest convenience. u