An insurance company's capacity—their supply of insurance—determines how much coverage they can offer and at what price. Unstable capacity leads to unstable coverage availability and pricing. AFM's financial strength and property expertise allow clients to have access to large amounts of stable capacity. Through the market swings of the past 10 years we have been able to more than double the amount of capacity available to clients.
Stable capacity is important because it:
We see less fluctuations in pricing and terms with AFM than many other markets.
How does this relate to my industry?
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Large blocks of capacity available year after year help clients stabilise the availability and pricing of coverage.
Middle-market clients often have single locations with high property and business income exposure. To protect both assets and income, they need adequate, reliable capacity year after year. Without stable capacity, a supply reduction can force clients to scramble for capacity from multiple carriers or tolerate excessive risk acceptance.
Developing long-term partnerships between insurers, brokers and their clients requires transparency and trust.
Continue to think "Long Term". I see AFM as the most stable and consistent market that I do business with. That is extremely important to me and our clients.
In order to build long-term partnerships, clients have to be able to understand what to expect. When insurers move in and out of markets, shrink coverage and adjust pricing frequently, building a trusting relationship can be difficult. AFM's stable business model and capacity promote trust and form the basis of strong, enduring relationships with clients.
A stable product and service offering helps clients understand what to expect.
Middle-market clients can't always absorb a large swing in a budget line item such as insurance. They also can't afford to retain high levels of exposure if the coverage they need isn't economically available. Clients that partner with AFM know that as the market moves, and capacity ebbs and flows, AFM remains committed to working with clients to stabilise their coverage—at competitive pricing.
Read an enVision article about how we partner with clients to stabilise wind capacity.