Ever notice just how frequently the local weather is a topic of conversation? This may in part be because no one is expected to do much about it, other than perhaps considering a relocation to San Diego for retirement. Among commercial lines insurers, dealing with the soft pricing cycle is pretty much equivalent to the weather— that is, grumble a bit about soft pricing but make little meaningful effort to adapt to it.

Executive Summary

By targeting knowable pockets of above-average exposure growth within their operating territories, carriers can exploit the pricing advantages inherent in new and growing accounts, MarketStance reveals in a state-by-state analysis of commercial package business.

Granted that next week’s weather in Boston may be only marginally predictable. However, the difference between Boston’s weather and San Diego’s is very predictable, and in property/casualty insurance, so it is with state-to state differences in insurable exposure growth— only far less discussed.

The remainder of this article will show how knowledge of insurable exposure growth differences from state-to-state influence premium growth and underwriting results—and how these differences can be used to optimize carrier planning and premium growth.

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