Laser focus on insurers' bottom-lines is key in CAT-prone areas

The catastrophic property insurance market has had trouble the past few years. With the market firming as a result of adverse loss development, there is temptation for insurance distributors to focus on top-line growth over bottom-line income. It can be challenging for insurance carriers and brokers to be cost competitive in coastal markets, according to Bryan Schofield, senior vice president of commercial lines at Orchid Insurance, a specialty underwriter of catastrophic property insurance. With significant wind and storm surge exposures, strong underwriting disciplines and thoughtful distribution are key in these areas. “There’s always someone out there who is undisciplined and more worried about the top line than the bottom line,” he told Insurance Business. “Since Orchid is an underwriting organization with CAT expertise, our emphasis is on preserving profit and making money for our carrier partners by aligning cost to exposure.