I recently had a conversation with a former executive at a large P&C insurance carrier. He shared a story from his time managing field operations: the leadership team would often talk about growth targets and issue directives to “go execute.” But there was rarely any strategic guidance on how to achieve that growth.
It was almost as if they believed growth worked like a water spigot—just turn it on and watch it flow.
In recent years, many carriers have leaned heavily on steep rate hikes as their primary growth strategy. And yes, the hard market environment supported it—rising inflation, nuclear verdicts, and increased repair costs all pointed toward premium increases across multiple lines. Premiums went up, revenue followed, and on paper, it looked like growth.
But did anything change operationally? Did carriers earn that growth, or did they simply benefit from market conditions?
It’s a fair question—and one that becomes especially relevant as the market begins to soften.
It was almost as if they believed growth worked like a water spigot—just turn it on and watch it flow.
The Soft Market Reality
As the market shifts, carriers that relied solely on premium increases without writing new business may find themselves exposed.
Agents and brokers remember the accounts you declined. Those clients went elsewhere—to carriers that were fighting for business, optimizing operations, and building strong distribution relationships.
At DCC, we measure the strength of the relationship between carriers and their distribution networks. Specifically, we assess how easy carriers are to do business with from the perspective of agents and brokers. In a softening market, this ease of doing business becomes more critical than ever.
Sustainable Growth Takes Work
True growth doesn’t come from turning a spigot. It comes from:
- Writing new business
- Improving operational efficiency
- Strengthening relationships with agents and brokers
- Being easy to work with—especially when times are tough
If your growth over the last few years benefited from rate increases alone, now is the time to rethink your approach. Because when the market softens, growth will come to those who’ve earned it at the expense of those who have not.
We can help you ensure that your organization is one that grows.