By Carol Drake, SVP, Personal Lines
Reflection back on 2024
2024 was the year of correction for the Personal Lines marketplace. Adjustments in pricing, risk sharing, and coverage changes in the auto and property market allowed the industry to begin to turn the corner to profitability. In fact, AM Best says the U.S. P/C market returned to profitability in the first half of 2024 with a $3.8 billion underwriting gain.
We’re now seeing signs that the hard market is beginning to dissipate—of course, in varying degrees by state and by line of business—bringing continued By: Carol Drake, SVP, Personal Lines excitement and optimism for 2025.
Looking ahead to 2025
As we look forward to 2025, we will continue to see personal auto rates normalize to the low to mid-single digits. In some states, rate decreases are on the way as carriers dial in their rates to become more competitive and begin to grow their new business strategically. We expect our carrier partners to continue promoting the benefits of offering telematics and mobile access to your customers. They have seen these solutions not only improve risk selection but, more importantly, help increase customer retention.
In fact, because of our strength in the marketplace and partnership with the largest carriers in the industry, we have started to have carrier partners who previously were not looking to add new agents, asking us for more new appointments. Looking ahead, we expect that to only expand in 2025.
The property line will be slower to respond since it takes more time for the rates, risk, and coverage changes to earn into the book, but with so much change in this line, this is where the best agents will succeed. For example, while meeting your clients, offer to explain their policy terms and take the time to conduct a formal annual coverage review. Your professionalism will stand out. Discussing terms of their policies and ways to help them identify the coverage that’s most important to them and potential ways to make it most affordable will drive sales, customer retention, and even higher customer satisfaction.
Agents Program
One thing remains consistent throughout all the market cycles: our commitment to our partners. The strength of our partnerships with our agents is helping them support their customers by bringing on new markets. In 2024, Smart Choice welcomed Steadily and Obie to the Agent Program, giving our agents access to two new landlord markets as we have seen many carriers limit or exit this line of business. Additionally, we added ePremium, a renters market, to the Program as we continue to look for new markets to help support our agents' growth.
Now is the time to contact your Territory Manager or State Director to ensure you’ve identified Smart Choice's best carrier partnerships and how to partner with them to grow a profitable book together.
Smart Start
Smart Start, too, continues to work strategically with our carrier partners to continuously review their underwriting appetite and make adjustments as they open up to accepting more new business. The team is dedicated to continuing to work with and support our agents, helping them keep up with our carriers' new underwriting requirements and standards as they work to find the best available market today and with more options and availability expected in 2025.
New: Smart Choice Private Client Solutions
Smart Choice has teamed up with leading carriers and MGAs to service the unique needs of high-net-worth individuals. Our Private Client Solutions is for individuals and families with a significant financial portfolio that requires specialized expertise and highly personalized service levels.
Our Private Client Solutions program offers custom coverage for individuals and families with:
- Large estate homes
- Multiple homes
- Coastal and vacation properties
- Residences in high-risk/wildfire regions
- Yachts
- Ranches and farms
- Exotic and collectible vehicles
- Art and Antiques
Policies will be written with A-Rated carriers that specialize in covering high-value risks for high-net-worth clients. The Smart Choice Private Client Solutions team has the experience and expertise to act as a trusted advisor to the client and integrate with the client’s financial team, asset managers, and real estate brokers.
The Private Client Solutions team utilizes a collaborative approach with clients and offers consultative reviews, comprehensive risk analysis, and a review of the adequacy of coverages and limits. In some circumstances, a recommendation for and review of the levels of selfinsurance may be made. Coverage reviews are conducted annually and when substantial acquisitions are made.
This is yet another reason to call your Territory Manager and/or State Director about gaining access to Smart Choice’s new Private Client Solutions team as we continue to expand our offerings to now include serving the high net-worth marketplace and bringing additional resources and opportunities to our agent partners.
Final Thought
As you continue to navigate your agency through every market cycle, whether it be hard or soft, you only have one call to make, and that’s to your Smart Choice Territory Manager or State Director to help you leverage every part of what Smart Choice has to offer so you too can increase your revenue in 2025.