Article Directory
Zurich's "Top-Tier Underwriting Talent": Or Just More Warm Bodies?
So, Zurich's hiring spree is supposed to be some kind of genius move? 100 new underwriting pros in the US alone, five new offices... Give me a break. It's all in their Q3 financial report, all happy talk about "expanding underwriting capabilities globally." Zurich Invests Heavily in Underwriting Talent to Boost Mid-Market, Specialty Growth
Cordioli—Zurich’s CFO—even admits the expense ratio is gonna jump. But, hey, “profitable growth will soon become apparent.” Right. That's what they always say. How long have we heard that before? I can’t even count.
$8 to $9 million in premiums per underwriter? That’s the expectation? That’s like saying every rookie quarterback is gonna be the next Tom Brady. The hubris is astounding. And what happens when they don't hit those numbers? Layoffs? Pressure cookers? I'd bet on it.
The London Calling Card
Then there’s this "dedicated global specialty unit" in London. Because, offcourse, all the world's problems are solved by opening another office in London. It’s supposed to “integrate and leverage our global capabilities to drive expansion of our approximately $9 billion portfolio of diversified exposure.”
Translation: We have no freakin’ clue what we’re doing, so let’s throw a bunch of money at a new division and hope something sticks.
Cordioli thinks there are “high barriers to entry and prerequisite risk expertise” in these specialty lines. Newsflash: that's what everyone thinks about their business. It's called justifying your existence.
And what "long-term growth trends" are they talking about with "investments in infrastructure and technology-related construction?" Half of that stuff is vaporware. Companies promise the moon, build some half-assed prototype, and then vanish with the funding. Zurich's gonna underwrite that? Good luck.
Oh, and speaking of luck...anyone else notice they slipped in that "underlying strength of Zurich’s middle market business has offset ongoing actions to prune parts of its U.S. program business, which didn’t meet strict underwriting standards"? So, they admit they were underwriting garbage before? And now they're suddenly geniuses at risk assessment? I'm not buying it.
My cable bill went up again this month. What's that got to do with anything? Absolutely nothing. But it's just as infuriating as this corporate puff piece masquerading as news.
Farmers and Sophisticated Risk
The Farmers Exchanges are seeing "further evidence of a meaningful transformation." Organic growth for the first time in over a decade. 103,000 new policies in six months.
Okay, fine. Maybe something’s actually working. Maybe. But let’s be real—insurance is the ultimate game of chance. You can have all the "sophisticated risk selection" you want (they reduced U.S. hurricane average annual loss exposure by 25%!), but one rogue hurricane, one massive earthquake, one idiot with a blowtorch… and the whole house of cards collapses.
And rates are "moderating" in property-catastrophe? Prices going up by 15% in commercial motor? Financial lines are "starting to strengthen a bit"? So what? It’s all just noise. The market's gonna do what the market's gonna do. Zurich can hire all the "top-tier talent" they want; they can't control the weather, they can't control the economy, and they sure as hell can't control human stupidity.
Another Day, Another Dollar...Or Maybe Less
So, what's the real story? Zurich's making a bet. A big one. On talent, on growth, on a future that may or may not exist. And honestly... I'm not convinced it's gonna pay off.