The Current State of the Property Insurance Market, and What Agents Can Do to Embrace It

The excess and surplus lines property insurance marketplace is buzzing with activity. With rates firming across multiple property segments, more and more submissions are flowing into the market, creating opportunities for agents to find creative insurance solutions for challenging risks.

A Shifting Rate Environment 

This tends to set the stage for differentiation. Insurers can gain a competitive advantage not only through the rate and coverage terms they’re willing to offer but also through the efficiency and transparency of their distribution. These things must be part of a company’s foundation.

To stand out in a soft market, you have to be really good at what you do. You do have the chance to grow in this challenging time if the talent is up to par.  As the property market starts to transition and tighten, you will certainly help you to have a well-established reputation. 

Property Segments 

The habitational market has seen quite a dramatic shift in the past year. Historically, habitational risk has been an attractive line of business because of the premium it promises. However, that premium dollar sometimes blinds insurers to the losses that creep in and accumulate over time. In 2019, the market reached a point where the losses in habitational property risk have accumulated to the extent that players are exiting the market and underwriting has tightened in a much stricter way.

Other pockets of business to pose challenges include dealer’s open lot, woodworking businesses, recyclers, food production businesses, and foundries. In terms of geography, it is the western states like California, Colorado, and Idaho that seem to be causing the toughest challenges for property insurers after years of persistent wildfire losses.  

Some of the standard lines markets have started to pull out of some of these more challenging segments, which can give you an opportunity to be involved in a bigger way. Even major global players have begun to tighten their capacity in certain property markets. This can allow access to accounts that you could have never even seen before. As the property market tightens and retail brokers seek additional capacity for their insureds’ accounts, wholesale brokers can differentiate themselves by providing unique solutions, and offering them speed.  

You really have to fight for the attention of the underwriter. The faster the underwriting is done the quicker quotes can be sent out

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.