The excess and surplus lines property insurance market defies 2023 predictions, with rate decreases gaining momentum, according to Risk Placement Services.
“One of the biggest challenges we face in the energy transformation is increasing our expertise in the new technologies that come with it … Learning about the risks and specificities of these new technologies is crucial for both the industry and its insurers.”
“I think most insurance companies have learned it’s not quite as simple as putting up a line and nothing ever breaks. But it’s an incredible opportunity, and it’s going be a growing part of insurance companies’ books.”
“Weather-related risks on the property side are a significant concern for risk managers and various industries. Leading experts, such as Colorado State University, forecast a very active hurricane season of at least 23 named storms and five major hurricanes, which is well above average.”
Increased capacity for property catastrophe reinsurance, including record cat bond issuance, signal a potential softening of rates, but an active hurricane season could counteract these trends, Howden Re reports.
Commercial real estate should see improved property insurance conditions in 2024, while the casualty market grapples with rising claims costs due to lawsuit abuse, Gallagher reports.
Where increasingly severe weather meets growing populations, property damage from wind, hail and flood may seem inevitable. Fortunately, there’s much that property risk engineers can do.
The solar panels rapidly being deployed across the country are vulnerable to damage from hail and costly to replace, limiting their risk transfer options. Parametric insurance injects some much-needed flexibility.