The insurance market is experiencing one of it's most challenging periods on record, due in large part to a series of natural catastrophes and a spate of significant insurance losses across the globe, combined with a sustained period of low interest rates and falling investment returns for insurers.
These challenging conditions, and the complexities that come with them, are making broker negotiations with insurers more difficult than ever. Insurers are adopting higher levels of scrutiny when evaluating risks, increasing premium costs, and making regular changes to their policy terms and conditions to limit the overall breadth of cover provided.
In short, the annual renewal process has become far more rigorous and challenging than ever before. As a result, brokers are increasingly delivering difficult news to their clients and presenting renewal outcomes that are far from ideal.
Consequently, insurance has leapt to the top of the agenda for many organisations who are now questioning the suitability of their insurance arrangements, including broker relationships. The question is: what’s the best way to go about this? More often than not for most companies, the answer is a Request for Proposal (RFP) exercise.
Download our Mastering the request for proposal process white paper to read more >