In the Latter Half of 2019, What Can We Expect for the Property Insurance Market?

As we move toward the end of 2019, the property insurance market is going through transformational change. Noticeable changes include pricing, coverage, capacity and deductibles. This creates challenges and opportunities for insurance professionals. Markets are working to reduce their exposure to different classes of business in an effort to increase profitability. This includes a rise in rates and deductibles, a reduction in limits and restricting terms.

Challenging parts of the property insurance landscape include the California Wildfire, convective storms, and floods. With so many natural disasters and unexpected losses, prices on liability lines will surely increase, except for international casualty and workers’ compensation.

There are more M&As occurring because the natural place of growth is coming from companies realizing their synergy and capitalizing on it. There are also lighter losses from 2018 and higher policyholder surpluses. Other factors include:

  • Changing the U.S tax structure
  • Overseas buyers are moving beyond their domestic markets
  • The attractiveness of insurance companies due to rising interest rates
  • New innovation driven by Technology and Insurtech.

E&S marketing is revamping, producing an increase in the amount of time needed to process submissions. In turn, this causes a delay in responses from carriers. It is vitally important to have clear and concise data with a wholesale broker that can provide favorable quotes.

Certain classes continue to be troubled, but capacity is still available in the marketplace. With builder’s risk, wood-frame construction is suffering, while CAT-exposed construction thrives in the buyer’s market. This is due to a number of factors, including better building codes and the nature of the construction industry. On the other hand, wood-frame construction continues to be plagued with huge fire losses over the past three years.

In the real estate market, it has been hardening due to general conditions and certain risk adjustments. Capacity has decreased while demand is doing the exact opposite, driven by multifamily construction. This trend is on par to have 5% growth this year.

Retail brokers must partner with a reliable insurance company and wholesaler that has full market access to meet the needs of clients. AmSuisse has an entire line of property insurance products to provide innovative solutions while responding to the challenges of the markets and provide protection against unforeseen risk.

For more information on AmSuisse and their line of products, contact an agent for a consultation today.

About AmSuisse

Formed in 2013, AmSuisse, Inc. has quickly distinguished itself as a wholesale operation that specializes in working very closely with our agents and broker partners to develop responsive, individualized service for each client. Our unparalleled writing support, industry-specific expertise, marketing support, responsive proposals and quotes, strong customer service, and strong relationships with our carrier partners have all helped us to provide the best possible coverage for our clients. To learn more about our available coverage, contact us today at (800) 485-0229 to speak with one of our representatives.