From: Xxxxxxxxxx
Sent: xxxxxx-xx-xx 3:48 PM
To: Xxx Xxxxxx
Subject: RE: Re: XXxxxxxx - Xxxxxxxxx Xxxxxxxxxxx Xxx. - August xx - Terms
Thanks Xxxx, for your deep clarifications. You helped me think through even more thoroughly, and resonate on myself and my research!
It is probably the 5th hard market cycle that I encountered. It is easy for them to say whatever, but we are the one who will stand to lose our business, and all our past business efforts on the account will become just null and void! Anybody cares?
We do business, and we must understand and look at things from our clients'/policyholders' standpoint. If we don't, then something must be wrong with our business! We will lose our business to whom? That's exactly what has happened, and will happen, like always!
Your very kind clarifications re-affirmed indirectly my study - that insurance business has been done wrong, all the way, because its "Business Model" of trading dollars is proximately and fundamentally wrong! Together with its coordinating and parallel wrong Industrial Organization! Lloyd's is the centre of the Insurance Universe, and the core of it all!
All along, people, and the public, and insurance policyholders as a whole, have already "formulated" something not very positive on our industry in their minds. Based on their experience and in history. Words like unfair, unreasonable, and not understandable are common. Someone even used words like mistrust, misunderstanding, and misconception to describe. Anyway, they are all bad, and nothing positive anyway. Just because risks and insurance are part of their lives, should we simply just ignore them and their such understanding, and use their ignorance and inability instead?
Insurance business is to provide insurance. You know what happens usually, anyway. And even when absolutely nothing ever happens, for years, yet rate increases, fluctuations, funny competitions, marketing methods, inconsistencies are common and allowed to happen, like usual, not to speak of claims..........., and now suddenly we have to deal with the subject file for 46% increase on renewal is an example!
Has the risk changed? No. Have people changed? No. Anything bad ever happens to the risk? No. Everything with the risk are just simple, clean and stable, and as is! Even if claim happens, that's what insurance is for, and we expect insurers must have done their job properly and accordingly. But more than often, things just happened all to the contrary!
You talked about "unprofitable results", definitely not on or because of our book of business with you, and probably it is because of their wrong business model, for sure, which they don't really care, or even know! So are creations like underwriting guidelines, parameters, and mandated pricing increases, etc., which I had heard many times before, and the end game is just to get more money, and no need to pay claims! Yet, at the same time, they are ready to write the same risk for less...............! Has the insurance industry ever truly and really lost money? Never. You can check with those big name international insurance accounting firms, like KXXX, Cxxxxx & Lxxxxxx, and Dxxxxxxx Txxxxx..............., they have all the figures and will tell you. So are their lawyers. They both are the important but silent components of the game, assisting and consulting all the voluntary investors (syndicates), and in fact, you and us are just silent and involuntary investors behind them all, as part of the OPM (Other People's Money)!
In history, as far as I could remember, there were only two (2) incidents that the industry had ever faced heavy back-breaking "losses". The Lloyd's Asbestos Saga in the early 1990s, ended up with Equitas, and now the life pensions and claims settlements/payments to the dying babyboomer generation. You know what happened, and what is happening and in progress now! In fact, there are also two (2) other exposures pending: namely, about cigarettes and smoking, and electro-magnetic wave. A lot has to do with the said old traditional wrong trading dollar business model!
Without going too far and too deep into our research, one thing I want to say is, if we allow the status quo of our insurance industry just to continue the same, we will see more unreasonable and unjust happenings around us, everyday! Including mass gun shootings! Not to speak of many other risks and exposures that we might not even know of, that we have to pay and will have to pay!
Risks and insurance touches on everything in this world. People just copy and learn, so all the unfairness and unreasonableness will continue! As insurance business is being done the same old way!
So much for now.
Thanks for your kind attention and consideration.
Xxxxxx Xxx
Xxxxxxxxxx Xxxxxxxxx xxx Xxxxxxxxx Xxxxxxxx Xxx.
Tel: xxx-xxx-xxxx
Fax: xxx-xxx-xxxx
Email: xxxx@xxxxxxxxxx.xxx
From: Xxx Xxxxxx [mailto:xxx@xxxx.xx]
Sent: xxxxxx-xx-xx 2:39 PM
To: Xxxxxxxxxx
Subject: Re: Re: XXxxxxxx - Xxxxxxxxx Xxxxxxxxxxx Xxx. - xxxxxx xx - Terms
Hi Xxxxxx,
Thanks for your email. We are up against a very tough market climate with our Lloyd's syndicates. There is a dwindling amount of capacity flowing from Lloyd's into Canada, as a result of sustained unprofitable results - particularly on the commercial property lines of business. As an organization, xxxxxxx xxxx is primarily casualty focused and we have much more latitude with renewals and new business placements for xxx policies - but on commercial property we have been given some considerable rate increases on certain segments and the need to bring pricing levels up to certain thresholds has been mandated.
We have fought this as best we could with our Lloyd's syndicates, and have seen many of our competitors lose much of their capacity during this transitional time for Lloyd's. We haven't lost any of our capabilities to write, but are still faced with the need to bring up pricing - even on accounts which have had a clean loss record.
This particular risk was hit with a substantial percentage as the pricing fell well below our new minimum requirements (even after we applied discounting). We know this is difficult to explain to the client. The Insurance market has evolved considerably over the past 12 months and there are many forces in play with which we do not have control.
Best regards,
Xxx Xxxxxx
Xxxxxxx Xxxx Xxxxxxxxx Xxxxxxxx Xxx.
Suite xxx, xxxx - xxxxx Xxxxxx,
Xxxxxxx, XX XXX XXX
Phone: x-xxx-xxx-xxxx
Fax: (xxx) xxx-xxxx
Email: xxx@xxxx.xx
Website: xxx.xxxx.xx
Sent: August-xx-xx 2:08 PM
To: Xxx Xxxxxx
Subject: RE: Re:XXxxxxxx - Xxxxxxxxx Xxxxxxxxxxx Xxx. - August xx - Terms
Hi, XXXX,
While I am still working on the renewal of the subject account, I reviewed the details and correspondence on the file again.
Thank you for bringing me even closer to the reality of "insurance business", which I have been researching on as I told you before.
Indirectly, you made me understand the reality better that insurance business is actually the very proximate cause of all the unreasonings and abrupt inconsistency, in fact weird situations and instability, we see happening in this world nowadays, and everyday!
Risks and insurance touches on everything in this world. And people simply just learnt and copied based on their experience, and do the same, especially when their human nature and weaknesses are called into (allowed to) play! And not only In playing games and exercise of authority, irrespective of all normal reasons and reasonings! Sometimes even in making wrong become right! That explains.
Chances are, we will lose this account anyway, for nothing, and probably it will end up with another broker and insurer writing it for less!
How could we expect the client be willing to pay 46% increase for insurance renewal on this simple clean and no loss building property that they have owned and insured through you for years?
Thank you for your support and understanding on this account.
Xxxxxx Xxx
Xxxxxxxxxx Xxxxxxxxx xxx Xxxxxxxxx Xxxxxxxx Xxx.
Tel: xxx-xxx-xxxx
Fax: xxx-xxx-xxxx
Email: xxxx@xxxxxxxxxx.xxx
From: Xxxxxxxxxx
Sent: August-xx-xx 1:03 AM
To: Xxx Xxxxxx
Subject: Re:XXxxxxxx - Xxxxxxxxx Xxxxxxxxxxx Xxx. - August xx - Terms
Thanks, Xxx. Will revert.
Xxxxxx Xxx
Xxxxxxxxxx Xxxxxxxxx xxx Xxxxxxxxx Xxxxxxxx Xxx.
Tel: ?xxx-xxx-xxxx
Fax: ?xxx-xxx-xxxx
Email: xxxx@xxxxxxxxxx.xxx
Subject: Re:XXxxxxxx - Xxxxxxxxx Xxxxxxxxxxx Xxx. - August xx - Terms
From: Xxx Xxxxxx
To: Xxxxxxxxxx ,Xxxx Xxxxxxx
CC:
Hi Xxxxxx,
We've had some changes to our underwriting guidelines and parameters, as well as mandated pricing increases on various lines of business. We have tried to keep the rating level as competitive as possible - and done the best we can do for you on this.
We understand that due to price sensitivity you may need to move the business elsewhere.
Best regards,
Xxx Xxxxxx
Xxxxxxx Xxxx Xxxxxxxxx Xxxxxxxx Xxx.
Xxxxx xxx, xxxx - xxxxx Xxxxxx,
Xxxxxxx, XX XXX XXX
Phone: x-xxx-xxx-xxxx
Fax: (xxx) xxx-xxxx
Email: xxx@xxxx.xx
Website: xxx.xxxx.xx