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How independent agents can prosper in a hard market
By EZLynx (an Applied Systems company)
With premiums rising and more consumers shopping the market, independent insurance agents are feeling the weight of a hard insurance market. A recent report showed that Q2 of 2023 was the 23rd consecutive quarter of premium increases. Commercial property jumped most out of all lines, at 18.3%.
For Michael Streit, the general manager of EZLynx, explains that it's not just one factor shifting the market; it's many. (EZLynx is an Applied Systems company.)
"Simply put, a hard market occurs when carriers emphasize profitability to an extent they haven't before," says Streit. "What causes this is lower profits, and one of the more recent drivers is inflation. Carriers wrote risk using assumed liability cost to cover losses, but when the cost of materials and labor expenses surged, profitability declined."
