Consumer Advisory: Navigating the Hard Insurance Market with the Help of an Independent Agent
The New Hampshire Insurance Department often receives questions from consumers about increasing insurance premiums and how to manage these costs effectively. Nationwide, the property and casualty insurance market is currently experiencing a "hard market," characterized by rising premiums, fewer coverage options, and more stringent underwriting standards. This phase typically occurs when insurers face growing claims costs and potential financial losses, prompting them to adjust their pricing and policies to maintain stability.
While New Hampshire’s insurance markets are considerably more stable, competitive, and healthy than those in many other states, we remain vigilant and proactive in addressing the broader trends that can impact our landscape. This awareness empowers us to adapt and strengthen our systems, ensuring continued resilience and positive outcomes for our consumers and stakeholders.
For a more detailed background explanation of the current property and casualty insurance market, consumers can watch this informative video of the NHID’s “2024 Property & Casualty Markets Symposium”, including a presentation from Robert P. Hartwig, PhD, CPCU, Clinical Associate Professor of Finance and Director of the Risk and Uncertainty Management Center at the University of South Carolina’s Darla Moore School of Business.
How to Navigate a Hard Market
One proactive step consumers can take is to shop around for the best insurance coverage. Working with an independent insurance agent can be an effective strategy to navigate the current market conditions and find coverage tailored to your needs.
Here are some steps to help you find and work with an independent insurance agent:
- Identify and Research Agent
- Look for insurance agencies in your area and reach out to them to learn about their services. Many agencies have websites with interactive tools that can help you locate agents near you.
- You can also contact agent associations, such as the New Hampshire Independent Agents Association ("Big I"), for assistance in finding a local agent.
- Verify Credentials
- Once you've identified a potential agent, verify their license status with the New Hampshire Insurance Department. This ensures you are working with a qualified professional.
- Evaluate Financial Stability and Reputation
- Consider the financial stability and customer service reputation of the agency. Check online reviews and ask for references if needed.
- Do Not Cancel Your Current Policy Prematurely
- Remember not to cancel your existing policy until your new one is active. A policy is only effective once the insurer or its agent has officially bound the coverage.
- Provide Accurate Information
- Ensure that all information provided on your insurance application is accurate. Misstatements can lead to incorrect quotes or even denial or cancellation of coverage.
Questions to Ask Your Agent
Once you've chosen an agent, it's important to have an open dialogue. Consider asking the following questions to make informed decisions about your coverage:
- Am I in your lowest-priced company or tier? If not, what are the reasons?
- What steps can I take to secure a better rate?
- What perils or coverages are excluded or limited in the policy?
- Is it possible to add any excluded perils or coverages back into the policy?
By taking these steps and actively working with an independent insurance agent, consumers can better navigate the complexities of the current insurance market and secure coverage that best meets their needs.
For any questions or concerns about your insurance coverage, please contact the New Hampshire Insurance Department's Consumer Services Division at 800-852-3416 or by email at consumerservices@ins.nh.gov.