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Cincinnati Insurance: A Unique Approach to E&S
The Cincinnati Insurance Companies have flourished in the insurance market for over 75 years, establishing a strong reputation through enduring partnerships with a select group of regional independent agents. This strategy extends into the surplus lines, or E&S market, where they differentiate themselves from competitors.
According to Don Doyle, Jr., who founded Cincinnati Specialty Underwriters (CSU) in 2007, a key aspect of their model is that they operate solely through Cincinnati’s appointed agents. Unlike many E&S providers, they avoid the use of wholesalers or managing general agents, giving them a unique edge in a market where over 75% is now dominated by just three major wholesale brokers.
The Strength of Direct Distribution
Doyle explains that CSU maintains control over underwriting and distribution, which has contributed to its consistent profitability. Their focus on creating purposeful relationships with independent agents allows them to better understand their clients’ needs and risks. This hands-on approach ensures that underwriting authority remains firmly within the company, leading to better outcomes.
Impressive Performance Metrics
Despite fluctuations in the E&S business, CSU consistently reports exceptional results, with a combined ratio—an indicator of overall profitability—better than 94 for 12 consecutive years. Their most recent full-year report showed premium growth approaching 15%. Such performance highlights the effectiveness of their focused E&S strategy amidst an increasingly competitive landscape.
Looking Ahead: The Future of Cincinnati Insurance
As the insurance landscape evolves, Cincinnati Insurance’s dedication to maintaining strong agent relationships and its unique distribution model position it favorably for future growth. This forward-thinking approach not only sets it apart but also ensures stability in an unpredictable market.
For homeowners seeking reliable insurance options, understanding the strengths of your insurance provider can play a crucial role in securing the right protection. Keep an eye on how companies like Cincinnati Insurance adapt to market changes, as this can inform your own choices when it comes to insurance coverage.
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