Property and Casualty Insurance Exam Difficulty: How to Crack the Code
A property and casualty insurance exam difficulty is based on the knowledge you have and how better you prepared for it. If you are highly dedicated in changing your life then cracking the code is not difficult. You can easily pass the exams with the right guidance and proper roadmap. However, the main difficulty lies during your time in the insurance industry.
The term property and casualty insurance contain two types of primary coverage: liability coverage and property protection coverage. For an insurance agent, on their way to become an independent insurance agent, P&C line of insurance can deem profitable in the long run.
Property and Casualty Insurance Lines:
The property and casualty insurance has two categories:
- Commercial Lines
- Personal Lines
Commercial insurance is insurance that provides coverage to businesses against losses from things such as damage to property or injury to employees. It is a term labeled for business insurance covers such as public liability and employers’ liability.
Personal insurance refers to the kind of insurance from an insurance broker or an agent that covers losses to individuals against death, injury, or loss of property. Also, this type of insurance line protects people and their families from losses they cannot afford to bear on their own.
Property and Casualty Insurance Line: Commercial vs. Personal Insurance
For a property and casualty insurance in Florida agent, choosing between the two lines of insurance can be baffling. For many years, personal insurance was the first choice and the golden child in the P&C industry. In 2018, Insurance Information Institute (III) showed that the Net Premium Written (NPW) for personal lines amounted to $329.8 billion, a 53.5% of total NPW. However, the constant rise of personal lines among the insurance agents left the market too saturated. There are fewer untapped niches in personal lines.
In contrast, the commercial lines growth rate of Net Premium Written for the first quarter of 2020 soared by 12.1 percent. Because of this, the dominant market of personal lines has now shifted towards commercial insurance among insurance brokerage.
Commercial insurance growth
As per U.S. Small Business Administration (SBA) in May 2020, there were 31.7 million small business. These business employs 60.6 million on average amounting to 47.1 percent of total US employees. The number of businesses varies from small home-based business to huge construction firm. Regardless of their size, commercial insurance’s need for adequate insurance coverage is growing.
In addition, commercial insurance’s high valued nature affects the insurance agents’ commission. Commercial insurance policies have a higher policy limit than personal insurance policies resulting in more commission. Also, the dynamic change in the business market resulted in new business trends. These developing business trends hint at better opportunities to tap into new niches for a better profit margin. The booming commercial market also hints at the rising fame of this line. The boom of commercial also increases their chance of cyber security risk. Hence, this also increases the demand of getting a cyber insurance to protect valuable information of an organization.
Property and casualty insurance is a huge market for insurance agents to tap into. But instead of going for the typical crowd, insurance agents can pave their own path. Commercial insurance’s rapid growth can raise eyebrows later on. Also, adding more options in your services can help you become a more successful insurance agent in your area. Tap into this line of insurance before it gets saturate because there are many areas left untapped for niches to develop. California is also a huge market to tap in.