AMWins, the largest player in the U.S. wholesale insurance market, has released their latest State of the Industry report. These bullet points represent the key issues affecting P3 clients
- Coastal storms have been minimal, meaning catastrophic coverage for properties in hurricane zones is more available and at lower rates.
- Earthquake capacity is increasing, and rates are likely to fall.
- Increasing capacity in the liability markets is resulting in slowing of rate increases.
- Inland storm risks, like tornados and hail, continue to be costly for the industry. Policies for properties in these regions may be expensive or have high deductibles.
- Flood risks have proven difficult to underwrite with accuracy. Property with significant flood risk will be difficult and expensive to place.
- Older residential buildings continue to be difficult for the industry, more so if they are in coastal areas. Property on the Texas coast is particularly difficult to place.
- Multi-family liability is amongst the most difficult risks to place. Some carriers are abandoning the sector all together. Minimum premiums and rate increases will continue to be the norm in this market.