The year ahead presents unique challenges in the Property sector. Staying informed is the best way to prepare and protect our insureds from the high possibility of insurance rate increases.

• Wildfires
• Storms
• High winds
• Floods
• Earthquakes

Visit the Fire Hazard Severity Zones (FHSZ) and assess your property’s fire risk.

A perfect storm of complications (no pun intended) has arisen in the marketplace due to the convergence of multiple factors, including industry-wide increases that are not limited to our clients. It’s crucial to factor in the unaccounted expenses from social inflation, enormous legal settlements (nuclear verdicts), disruptions in the supply chain, long-term effects from the COVID-19 pandemic, and the ongoing conflict between Russia and Ukraine, all of which are exacerbating the cost of losses.

Reinsurers are delaying their quotes with the expectation that prices will eventually increase as policies are not yet finalized. They now typically quote within 30 days of binding. Additionally, there is a trend of reducing line sizes as companies adjust their portfolios. The scarcity of retro capacity is keeping available capacity low, leading to higher prices and limited options.

The renewals in 2023 will remain difficult, with no hope of improved conditions for programs renewing in later spring. It is anticipated that prices will increase, accompanied by the reduced capacity.

The CAT property market for catastrophic events is challenging, and the outlook is not optimistic. It is important to collaborate with a knowledgeable team who understands the property insurance marketplace, including the specific type of business of the policyholder, to assess your needs and develop a customized coverage plan that best suits your business.

There’s a fine line between “unsure” and “insure.” Whether you have a question, want to start working with us, or just feel like having a good ol’ heart-to-heart about insurance (and who doesn’t?!) — we want to hear from you!