The Hidden Costs of Switching Carriers at Renewal Time

It’s no secret, insurance costs are on the rise – across coverages. And current market trends reveal larger increases in the first quarter of 2022. More specifically, that’s a 19.7% increase for cyber insurance, 9.7% for umbrella and excess insurance, 10.3% increase for transportation and 8.7% increase for directors and officers liability insurance.^[1] Experts predict overall rate increases of between 5% and 10% across policy type in 2022.

These rate increases are causing some businesses to second-guess their carrier commitments. They’re wondering if the grass is indeed greener. Would changing their insurance carrier reduce their rate? These are reasonable questions around renewal time, but many businesses are not factoring in the costs buried within the decision to switch.

Changing insurance carriers, agents or brokers might seem like a quick fix for high premium rates, but it may end up costing your business more in the long run.

A lot goes into a policy based on which carrier a business chooses. Here are eight considerations you’ll want to consider before making the switch:

Renewal time is important, and IAT Insurance Group wants you to make the right decision for your business. Contact us to learn more.

[1] Business Insurance “Commercial prices continue to increase in Q1: MarketScout,” April 5, 2022.

[2] Insureon “Admitted vs. non-admitted insurance carriers,” Accessed April 30, 2022.