What is a P & C Insurance Agent?

P & C Insurance Agent is focused on the coverage for those to cover losses due to injury, accidents, or damage to properties. In contrast, commercial insurance provides insurance products for different business protection needs.

History of Personal Insurance

In 2018, Insurance Information Institute (III) showed Net Premium Written (NPW) for personal insurance was 53.5%, which amounted $329.8 billion. On the other hand, the NPW for the commercial line was 46.5% of the total NPW, which is $287.1 billion. However, in recent years, the table has been turning and can see significant growth in commercial line insurance favor. Is it the same for Personal Insurance? Is the market for personal insurance declining due to rapid economic growth in other states?
Based on the first-quarter financial result of 2020 by III, the growth rate of NPW for the commercial line has increased by 12.1 percent whereas, the personal line has faced a growth rate of only 3.0 percent. The data supports that though personal insurance has been a golden goose for independent insurance agent, the profitable niche market has yet to be shifted towards commercial insurance.

what is a p&c insurance agent

What is a P & C Insurance Agent?

Here are the reasons to highlight why commercial insurance is better over personal insurance:

Commercial insurance has a higher possibility to earn a commission. The policy limits in commercial insurance are higher than that of personal insurance. The higher the policy limits, the higher the commission dollar you earn. Hence making it beneficial to become an independent insurance agent and sell commercial insurance policies. If you question What Does Personal Property Insurance Cover? then this blog is for you.

Coverage for Property and Casualty Insurance

With increasing new businesses in the market, commercial insurance has more market opportunities. For instance, new business ideas like Uber and Lyft have created a new niche for the insurance business in ridesharing insurance and proliferate or in the E and O insurance market.

Scenarios That Property and Casualty Insurers Cover

The number of small businesses has been growing. According to the U.S. Small Business Administration (SBA) stats, the total number of small businesses registered in 2020 was 31.7 million. On the other hand, the federal government made it mandatory for the business to provide worker’s compensation insurance once hired.

Rising commercial insurance premium rate 

The personal insurance in Illinois and commercial insurance premium rate increased gradually in the last few years. During the first quarter of 2020, the Financial and professional liability insurance rate rose to 23 percent, and the Directors and Officers (D&O) reached 44 percent. It is a good sign for local insurance agent because higher the insurance rate, the higher would be their commission earnings.

Property is vandalized and damaged

With advanced technology and innovations in businesses, it also bring risks such as cyber hackings and attacks on businesses. In 2018 the average loss due to cyber-attack was recorded to be 27.37 million in the U.S. Unfortunately, only 37 percent of the company provided cyber insurance leading towards the opportunity for cyber liability insurance in the insurance market.

Hence, looking at the growing commercial line insurance market, it would be beneficial to engage in commercial line insurance for an insurance agent. However, insurance can be a risky business for agents. Hence, getting an E and O insurance for insurance agents can slim down the risk.

personal insurance
personal insurance