In the hard market, are you selling on price or coverage?

Price point and carrier capacity have become increasingly important factors for brokers in recommending insurance coverage to their clients over the past year, according to Canadian Underwriter’s 2021 National Broker Survey. Canadian Underwriter asked 234 Canadian P&C insurance brokers across the country what they considered to be the most important factors for them. Seventy-one per cent of brokers ranked price point among the highest factors, while 67% rated carrier capacity highly. Broker experience plays a role in whether a broker is more inclined to consider price point or insurer capacity, the survey shows. Brokers with fewer than 16 years of experience in the business — some of whom may never have sold insurance in a hard market before — are more likely to take the price of the policy into consideration. On the other hand, more experienced brokers are more likely to consider a carrier’s capacity. The broker value proposition in Canada is frequently described to the consumer as “the right coverage for the right price.” But the current hard market cycle, which has seen higher prices and deductibles, as well as shrinking capacity in some high-risk lines, has tested the broker’s ability to keep the conversation focused on cover…
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