Stabilizing Insurance Premiums
Insurance premiums should not go up and down annually in a dramatic fashion. They should be steady, with only minor fluctuations. Why then, are carriers so competitive one year and thirty percent higher the next?
The reason is in their lack of control and consistency with the underwriting process. Relaxing underwriting controls always opens the flood gates. This is a surefire way to increase revenues…and problems. When insurance companies take this approach, they encounter upward fluctuations with their Combined Loss Ratios. This, in turn, leads to increased premiums for customers.
Your insurance premiums should be fair. Not the lowest…not the highest…just, competitive. Taking control over the underwriting process provides stability of premiums. And, setting the bar high for qualifications, rather than low, sends a message of quality versus price.
Explore Captives…Decide what’s important to you. The difference is Stability and Control.
Learn more about DMG on our website: www.DealerManagementGroup.net
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