P and C Insurance Interview Questions: Preparing for It
When you prepare yourself on any interview, you would want to know the questions that they ask. If you are applying to work with an insurance company, these p and c insurance interview questions can help you prepare better. Generally, the questions can be what is property and casualty business insurance or even definition of some insurance policies.
Insurance Agents’ preference over personal insurance secures the position of favored insurance lines in property and casualty insurance. However, in recent times, the demand for commercial lines has also been widely increasing. Some of the insurance blog also agrees with the increasing demand of commercial insurance. According to the Insurance Information Institute (III), the direct premium written (DPW) of property and casualty insurance (P&C) as per in 2019 has increased by 5.2%. Property and casualty insurance Jacksonville is projected to grow by 20% by 2023.
Property and Casualty Insurance: Why switch to commercial insurance?
Businesses have been growing excessively, and the market is becoming more and more competitive by the day. According to the U.S. Small Business Administration (SBA), there were 31.7 million small businesses that employed an aggregate of 60.6 million employees as of May 2020. Also, the increase in demand of commercial insurance is directly related to the increase in small to large businesses.
Here are some major highlights showing why commercial insurance is better:
- Growing business – As mentioned earlier, the number of companies is booming. According to SBA, there has been an addition of 1 million businesses from 2019 to 2020. The federal government mandates every business to purchase commercial insurance, which leads to greater demands for commercial insurance. The growing rate of businesses in Hartford, Connecticut also shows a huge demand for commercial insurance in the Property and Casualty insurance in Hartford.
- Diversified proliferation – Businesses keep changing and evolving with time in today’s market. The demands keep fluctuating, and you never know what the next best thing would be tomorrow. New business trends allow the insurance industry to develop new niches. However, the personal lines have stagnant diversity while you will be able to build probable niches under a specific commercial niche. Also, the use of an insurance software helps you track the diversified businesses and manage compliances.
- High commission payout – The policy limits of commercial insurance policies are comparatively higher than that of personal insurance policies. The commissions earned is directly affected by the high-valued nature of commercial insurance. Higher policy limits lead to higher commission dollars and vice-versa. Using an agency management system will also help in tracking your payouts from selling commercial insurance policies.
- Rise in commercial insurance rates – The insurance premium rates increased in 2020 by 23% in Financial and Professional liability policies and by 44% in Directors and Officers insurance. Higher prices also indicate higher commission dollars. Furthermore, a rise in renewal fees can also result in a higher commission.
- Penetrating technologies in insurance – With the massive exposure of technology, businesses have constantly brought about changes with the advancements. Also, the increasing use of an insurance agency management system among insurance agencies shows a demand for cyber security. However, the number of cyber-attacks has also been increasing. According to Statista, the average loss due to cyber-crime was 27.37 million in the U.S. as of 2018. Also, this implies that there is a potential market to tap into cyber insurance.
According to statistics, Property and casualty insurance had $6.8 billion gross state product. Hence, there is a wide pool of opportunities in the commercial insurance if you can figure out the right niche for you. Unlike personal insurance, commercial insurance will not be rigid and will help you grow and be flexible at it. Also, if you want to establish a successful insurance agency, then do consider selling commercial line of insurance to cater a whole new audience.