Evidence of aggressive pricing6 Jul 2015 15:08
My friends are in the care home business. They have 6 homes with a enterprise value of about £50m. Their underwriters for building, contents, employers liability, business interruption, public liability, medical malpractice are ALL with Gable. I said to them why they chose Gable. They said Gable were by far the cheapest - about 50% of the next lowest who are a much larger financially stronger outfit (and I assume exercising more prudent pricing). I said to them Gable are small and would likely struggle to payout if they worst case had some big claims. To me it looks Gable have been pushing too aggressively by building a book of premium not paying enough attention on durable profitable underwriting. My friends are looking to end their existing polices asap and insure with more reputable underwriters.