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Companies create high growth goals and tie bonuses to them, resulting in either taking on risk that is very marginable or concentrating way too much in an area. There is only so much good risks out there and even if it is all good risks, one disaster in a concentrated area defeats the purpose. Years ago when I worked at a company, we discovered we were too saturated in Mobile, AL and Houston, TX. So we started cancelling policies until we were in a comfortable position. A hurricane did hit and we were able to absorb the losses as a result, had we not done that, shit would hit the fan.

It takes discipline to say, screw the growth goal if it makes you unprofitable. One thing I noticed, whenever we had openings, those that filled them were often from other companies they bailed on when profitability tanked on them. They get the orders to grow and when it came back to bite them, they took off. Nor does it help, re-insurance is getting more expensive and/or more difficult to acquire. Too many often go with the assumption they will have that later and use it to justify taking on risks they wouldn't normally do.