How To Pass The P&C Insurance Test

 How to pass the P&C Insurance test 

How to pass the P&C Insurance test covers people against loss because of death, injury, or loss of property. In addition, personal lines shields insureds and their families from losses they cannot bear to cover on their own. The coverage generally depends on how much the insurance buyer is willing to pay in premiums. An insurance software can help insurance agents to manage their clients and learn about what other personal line of insurance do they prefer.

How To Pass The P&C Insurance Test 

According to Insurance Information Institute, in 2018 the Net Premium Written (NPW) for personal lines was $329.8 billion. The massive market shown in personal insurance line shows that there is still room for untapped niches in this line.

In the first quarter of 2020, the growth rate of Net Premium Written (NPW) for personal insurance lines is 3.0 percent. Whereas, the growth rate for commercial lines soared to 12.1 percent. In comparison, commercial lines’ growth rate was 9.3 percent in first quarter of 2019. This drastic growth shows the changing market conditions and preference of selling commercial insurance rather than P&C Insurance Test.


how to pass the p&c insurance test

How To Pass The P&C Insurance Test 

As mentioned above, the significant Net Premium Written growth rate for commercial insurance hints at the number of untapped niches left unexplored. The change within the property and casualty insurance market shows the numbers of profitable niches in the commercial insurance arena.

Even though personal insurance was profitable for a long time, the market seems too saturated in terms of profitable niches. There are various insurance blog that supports the rise of commercial insurance because of the rising profit margin of this line.

To Pass The P&C Insurance Test 

The number of benefits in selling commercial insurance lines for insurance agents can be huge. Especially an individual becoming an independent insurance agent can carve out profitable niches in the commercial insurance arena. As per U.S. Small Business Administration (SBA), there were 31.7 million small businesses in the US that employs an average of 60.6 million. Regardless of their size, one thing common between them is the adequate insurance coverage required

The reasons highlighted to choose commercial insurance line to sell are as follows:

  • High commission: Commercial policies have higher limits than personal insurance. Also, commercial’s high-valued nature influences the commissions earned. Hence, the high commissions are also relevant in the commercial line.
  • Growing business in of the commercial market: The growing businesses raise the demands for commercial insurance. Also, the federal government compels every business to get commercial insurance such as worker’s compensation insurance and so forth. Also, with the help of an insurance agency management system, the growing trends of commercial insurance among the customers can be recorded for forecasting about their behaviors.
  • Growing commercial insurance rates: The premium rates increased in the first quarter of 2020. Higher premium prices equal to higher commission dollars. The biggest spike shown are Financial and Professional liability policies by 23%, and Directors and Officer (D&O) insurance by 44%.

P&C Insurance Test 

Personal insurance in Arizona still has its charm and won’t lose it anytime soon. However, with the impressive growth of commercial insurance, smart insurance agents won’t deny the profits in the arena. It is better to update about such trends rather than stay under the rock if you want a successful insurance agency.

An agency management system can help you interact with insurance market leaders and understand about the rates and the factors behind it.

personal insurance
personal insurance