WORCESTER, Mass., Feb. 15, 2022 /PRNewswire/ -- The Hanover
Insurance Group, Inc. (NYSE: THG) today released its "State
of Specialty Insurance Report," which highlights the risks of
fragmentation in the marketplace. The report spotlights the
advantages agencies realize when they create strategic partnerships
with select carriers that offer broad capabilities and deep
expertise.
The Hanover, in conjunction
with Zeldis Research, conducted a study of over 300 independent
retail agents responsible for quoting and making placement
decisions for commercial lines clients. The report studied
how their agencies approach specialty lines and the key factors
they consider in the placement decision-making process. Notable
trends uncovered through the research include:
- Agents' knowledge spans the full breadth of commercial
lines – Agents have broad expertise and possess the
capabilities to meet the wide spectrum of their clients' needs, as
the vast majority (96%) of agents sell or place both specialty
lines and standard lines products.
- Agents take a targeted approach to policy placements –
Agents choose to place specialty business directly with carriers
about half of the time, selecting to leverage wholesalers, MGAs or
MGUs the balance of the time for market accessibility or expertise
in a specific product, line or industry.
- Agents strongly value carriers with a wide reach - Among
agents who expressed a preference, 81% prefer national carriers to
niche carriers due to the broader footprint and availability of
coverages.
While these findings lend themselves to a framework for
strategic carrier selections, a review of The Hanover's agency data reveals that carrier
selection is often made tactically. As a result, agents end up
working with multiple carriers depending on the specialty line they
are placing, resulting in widespread fragmentation in an agency's
portfolio. Notable findings include:
- 50% of commercial accounts have only a single policy with an
agency, but have many more insurance policies elsewhere.
- When commercial accounts do have more than one policy with an
agency, 24% are split across multiple markets, causing added work
for agencies that are often left trying to coordinate placement and
servicing across multiple carriers.
- The typical mid-sized agency has at least 50 carrier
relationships, and sometimes significantly more, yet more than 60%
of an agency's premium is placed with its top five markets
"Agents have an invaluable opportunity to serve their clients by
taking a cohesive approach to solving their needs," said
Bryan J. Salvatore, president of
specialty at The Hanover. "Today's
client is looking for ease of doing business and streamlined
service, both of which can be achieved by partnering with carriers
that have comprehensive, carefully-designed product portfolios that
respond to a wide variety of risks."
With this in mind, The Hanover
is working with its agent partners to understand their needs and
develop specialized solutions that align with their books of
business, such as its new specialty general liability and enhanced
excess and surplus offerings. Additionally, The Hanover's expert underwriters operate across
lines of business to offer coverage in a thoughtful, coordinated
way that makes it easy for agents to deliver cohesive coverage to
their clients.
To see the full report please click here.
About The Hanover
The
Hanover Insurance Group, Inc. is the holding company for several
property and casualty insurance companies, which together
constitute one of the largest insurance businesses in the United States. The company provides
exceptional insurance solutions through a select group of
independent agents and brokers. Together with its agent partners,
The Hanover offers standard and
specialized insurance protection for small and mid-sized
businesses, as well as for homes, automobiles, and other personal
items. For more information, please visit hanover.com.
CONTACTS:
|
|
Emily P. Trevallion
|
Kyle
Tildsley
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etrevallion@hanover.com
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ktildsley@hanover.com
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508-855-3263
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508-855-3287
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All products are underwritten by The Hanover Insurance
Company or one of its insurance company subsidiaries or affiliates
("The Hanover"). Coverage may not
be available in all jurisdictions and is subject to the company
underwriting guidelines and the issued policy. This material is
provided for informational purposes only and does not provide any
coverage. For more information about The Hanover visit our website
at www.hanover.com.
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SOURCE The Hanover Insurance Group, Inc.