In October, Dan Reynolds, editor in chief of Risk & Insurance, caught up with Tonya Courtney, SVP Brokerage Property, Nationwide. What follows is a transcript of that discussion, edited for length and clarity.

Risk & Insurance: How is the E&S market evolving recently, and what role does a carrier like Nationwide play during changing market conditions?

Tonya Courtney: We’re in a dynamic moment. The market is softening, but the complexity hasn’t gone away. Inflation, capital volatility, and climate risk are still very much in play. What’s changed is how we navigate it. At Nationwide, we’re focused on precision, disciplined underwriting, strategic capital deployment, and long-term partnerships. That’s how we bring stability. Not just because we’re a Fortune 100 company, but because we’re intentional in how we operate. We’re built for resilience, and that means making smart decisions even when the market gets noisy.

The role of carriers today centers on precision in capital management and disciplined risk selection, an approach that becomes especially critical in a softening market. While Fortune 100 companies like Nationwide have traditionally served as stabilizing forces, it’s the broader group of disciplined carriers – regardless of size or ranking – that collectively help maintain market balance.

As a modern mutual, Nationwide brings stability while maintaining resources for a long-term perspective. This approach is crucial for maintaining market presence and serving our customers effectively. We’re navigating the evolution and tension between softening rates and strong carrier balance sheets, while still addressing catastrophe volatility and the need for precision due to climate change.

R&I: What are the keys to long-term stability for a carrier?

TC: Nationwide and other companies who prioritize long-term stability over short-term market share reinforce resilience not only across their company, but also across the industry. Experience has taught us that chasing market share is simply not a good long-term strategy for any company. Nationwide has the resources to manage their capital more strategically and precisely, which contributes significantly to our stability.

From a 30,000-foot perspective, the industry could prioritize long-term decisions over the pursuit of premium growth or market share. For organizations with strong reputations, including those recognized among the Fortune 100, this discipline reinforces strategic partnerships and broker relationships built on mutual respect and aligned values. Our collective commitment to thoughtful underwriting and long-term stability strengthens the market. The elements that truly matter for a Fortune 100 company like ours are reputation, stability, precision, and capital management. These fundamentals drive our long-term success rather than short-term market share gains.

R&I: Does Nationwide use an exclusive wholesale distribution model for brokerage property?

TC: For brokerage property, yes. We started with a limited and curated group of broker partners, which allows us to be strategic in selecting partners who are aligned with our goals and objectives.

We’re a startup within a Fortune 100 company, so it’s critically important for us to have the right broker partners who are aligned with our strategy, understand what we’re looking for and share our vision. That commitment ensures both parties want each other to succeed, creating the alignment necessary for our business model.

R&I: How has the science of establishing appropriate insurance limits evolved, especially as market conditions change across different economic sectors?

TC: That process has become much more strategic in recent years with the implementation of AI, technology, and data analytics. These tools allow us to be more certain about the risks we’re taking on. For example, seven years ago, we relied solely on broker-provided information about property values. With advanced data analytics and strong valuation tools, we can now independently verify property valuations. Our insured building may be valued at $1 million on a schedule of locations, but our analytics may indicate it’s worth $4 million. Concisely, we have more accurate information to make decisions about how much capacity we want to deploy in addition to setting appropriate attachment points and pricing adequately for our exposures.

AI also helps us verify building construction characteristics. A simple “FR” description on a building schedule may be interpreted as Fire Resistive when it’s frame construction. That misinterpretation represents a significant difference in risk exposure. By implementing data tools, AI, and geospatial inputs, we appropriately classify the building and gain a much clearer understanding of our true exposure.

Ten years ago, we simply didn’t have this level of insight into risk assessment. Enhanced accuracy allows us to be more confident in the limits we deploy because we understand what our exposure is.

R&I: What makes accurate property valuation more critical in today’s market compared to recent years?

TC: Accurate valuation has taken on heightened importance in the post-COVID environment. We’ve seen building values rise more than 30% since the pandemic, an increase that has significant implications for underwriting integrity, portfolio management, and client expectations. Precision in valuation is no longer optional; it’s foundational to maintain credibility and performance in today’s market.

R&I: Which business classes are experiencing significant risk profile changes and why?

TC: Habitational and frame exposures are undergoing meaningful shifts in how we profile those exposures, and the underwriting implications are significant.

We’re seeing a rise in podium-style construction, which typically blends a fire-resistive base with wood-frame upper levels. While this design offers flexibility, it also introduces concentrated value exposure. A single structure could represent up to $70 million in total insured value, all subject to one fire loss. This concentration of values heightens the need for precise pricing and disciplined underwriting, especially given the rapid burn characteristics of both frame construction and habitation risks.

At the same time, capacity has returned to the market for frame risks, especially for non-CAT frame construction, with carriers and MGAs offering larger line sizes and improved terms. Smaller projects are now being placed with fewer markets, and pricing and placement are more streamlined. It’s worth noting that the expansion of capacity does not, however, mitigate the fact that frame construction remains highly flammable.

R&I: What is the relationship between softening property rates and actual risk levels in the current market?

TC: I can’t say it enough – softening does not equal safety. While property rates may be softening, it’s critical to recognize that this trend does not reflect a reduction in actual risk. A more competitive pricing environment does not equate to improved safety or diminished exposure, and climate data continues to underscore the severity of our risk landscape.

R&I: How does an in-house claims handling approach impact the customer experience?

TC: Speed is one of the more obvious elements that insured parties should experience in the claims process. I acknowledge that speed is critical but also recognize that empathy is something that isn’t discussed enough. As carriers, we serve insureds whose families and financial health are impacted after a loss. It’s important to remember the incredible stress that comes along with a loss reinforcing the value of empathy in the claims process. Showing empathy, caring about the claim outcome, and handling it with sensitivity are vital components of effective claims management.

R&I: How do you instill a consciousness around empathy in coworkers or people you supervise within your organizational culture?

TC: When empathy is part of the fabric of the culture, you must reinforce it at every opportunity. As a leader, when I see behavior that doesn’t align with Nationwide values, I call it out and remodel the appropriate behavior.

My own execution is not always perfect. But I work hard every day to display it in my own behavior so that it’s not just lip service and it reinforces an environment of trust and safety.

I’ve worked for exceptional companies known for their strong cultures, but there’s something distinct about experiencing a deeper level of care when that purpose is woven into the fabric of the mission. The legacy of extraordinary care isn’t just history, it’s visible today in how the company shows up for its associates and communities.

R&I: What other technological advancements or tools beyond AI are positively impacting the underwriting process?

TC: While AI continues to reshape underwriting, several other technologies are delivering meaningful impact, particularly in the E&S property space where volume and complexity demand precision.

Geospatial data has become a powerful tool. Satellite imagery now allows us to assess roof conditions remotely, which is especially critical in coastal regions where physical inspections aren’t always feasible. This capability enhances risk evaluation and speeds decision-making.

Valuation tools remain essential for accurate pricing and setting appropriate attachment points. Meanwhile, catastrophe modeling continues to evolve. While no model is perfect given its reliance on simulated loss data, it’s improving in areas like wildfire risk assessment. Severe convective storms, however, still present modeling challenges that require further refinement.

Underwriting workbenches have transformed how we manage data. What once required manual review of thousands of locations in Excel is now streamlined. These platforms consolidate location intelligence, highlight proximity to coastlines, and distinguish between fire-resistive and frame construction, all in real time. This not only improves accuracy but also reduces human error and enhances strategic insight.

These advancements are helping underwriters move faster, think smarter, and make more informed decisions without compromising on discipline or risk integrity.

R&I: How are underwriters managing the increasing volume of available data with current technology tools?

TC: The volume of data available to underwriters today is unprecedented and growing. While the tools to manage it exist, the responsibility to ensure they’re used effectively falls squarely on leadership. It’s my role to evaluate and select the platforms that best support our underwriting teams, allowing them to focus on what they do best: making sound, strategic decisions.

The sheer number of AI-driven solutions and data platforms in the market can be overwhelming. Every vendor offers a compelling value proposition, but not every tool is right for our business. I spend considerable time assessing these technologies to determine which ones truly enhance underwriting performance without adding unnecessary complexity.

Our goal is to streamline processes and remove friction. By making thoughtful, strategic choices about the systems we implement, we ensure our underwriters aren’t burdened by the noise of excessive data, they’re empowered by clarity. That’s how we maintain focus, accuracy, and discipline in a rapidly evolving environment.

R&I: Can experienced professionals remain essential given AI advancements?

TC: I passionately believe that AI will not replace human underwriters, but underwriters who effectively leverage AI will undoubtedly outpace those who don’t. That distinction is critical. AI is not a substitute for human expertise; it’s a force multiplier.

What AI offers is sharper analysis, faster access to insights, and the ability to process vast amounts of data that would be impractical to manage manually. It helps us move from educated guesses to informed decisions. But execution still rests with people. Risk management requires context, judgment, and relationship-driven insight, none of which AI can replicate in its current form.

My responsibility is to ensure AI is used thoughtfully to empower our teams, enhance decision-making, and strengthen our underwriting discipline. When applied with purpose, AI doesn’t replace us it just makes us better.

R&I: What changes are you observing in capacity deployment among carriers in the excess insurance market?

TC: We’re seeing a clear shift in how carriers deploy capacity in today’s softening market. Historically, excess and surplus lines carriers have viewed $2.5 to $5 million as a prudent working line, balancing exposure with uncertainty. But that threshold is evolving. With increased market competition and broader availability of capacity, carriers are now deploying significantly larger lines.

This shift is not arbitrary – it’s driven by better tools and deeper data. AI and advanced analytics have enhanced our confidence in risk selection and portfolio management. In the past, we relied heavily on data that lacked precision. Today, we have greater visibility into aggregate exposures and more accurate valuation inputs, allowing us to make informed decisions about where and how we deploy capacity.

The facultative reinsurance market is also playing a key role. It’s highly competitive right now, and that dynamic is enabling carriers to stretch their capacity further while maintaining disciplined risk management. The result is a noticeable upward movement in working lines across the board.

This is about smarter deployment- not just bigger bets. With the right data, tools, and strategic partnerships, carriers are better positioned to support larger placements while maintaining underwriting integrity.

R&I: How are increasing catastrophic exposures affecting your approach to coverage distribution and form writing?

TC: As catastrophic exposures continue to increase in frequency and severity, our approach to coverage distribution and form writing has become increasingly deliberate. We work with a range of policy forms, both broker-driven and proprietary, and maintaining clarity around what we’re signing on for is non-negotiable. Diligence in form review is a foundational part of our process, to ensure alignment with our underwriting intent and risk appetite.

Equally important is strategic risk selection. In a softening market, pricing alone is not a reliable indicator of quality. A higher rate on a poor risk doesn’t equate to a sound decision. Our focus is on selecting risks that align with our long-term strategy, not just our short-term pricing targets. That’s where disciplined underwriting and surgical capital allocation come into play.

We’re also assertive in defining our contractual boundaries. When provisions raise concerns, we’re clear about what we will and won’t accept. This level of precision is essential in today’s environment, where CAT exposures are intensifying and policy language must be airtight. &