As we have closed out the first quarter of 2019 and are moving towards the end of the second one, it’s time to take a look at the insurance marketplace, the changes that we have seen thus far this year, and what we can expect to see for the remainder of 2019.
Technology and digitization have impacted practically every industry in the modern world and are continuing to find their way into the insurance sector. New opportunities for growth in the property insurance industry are opening the doors for insurers to modernize their products for consumers as more personalized services are expected.
Here are some of the major trends taking place in the property insurance industry heading into the second half of 2019.
The following trends and developments should be closely monitored as we move into the third and fourth quarter of 2019:
- A harder market. Property is not the only sector that will be affected by this. As a result of losses (particularly adverse CAT loss development, greater attritional losses, and valuation problems) in the property sector, all classes are likely to see more market hardening in the remainder of 2019.
- Rises in treaty reinsurance prices. Both April 1 and May 1 renewals have seen greater increases.
- Carrier retrenching. In their efforts to see more favorable results, carriers have taken actions including increasing deductibles, further restricting terms and conditions, and repositioning account capacity.
- Shifting focus. Many carriers are opting to do business with a lower quantity of brokers, instead selecting wholesalers and retailers with more niche specializations, in order to create high-quality submissions.
- Profitability. As a result of 2018’s loss development, carriers are seeking to rectify their past mistakes and greatly improve their underwriting results.
- Lloyd’s of London. With a greater focus on syndicate performance, this could lead to significant market changes, particularly in the E&S sector.
Property Losses and Natural Disasters
2019’s Q2 has seen a record streak of severe weather incidents, tornadoes in particular. Based on the incidents that have already occurred as well as the projected events, it is likely that Q2 will see much higher numbers in property losses and insured losses.
About Genesee General
At Genesee, we strive to provide quality insurance solutions for the Commercial E & S sector. Our longstanding expertise has allowed us to successfully serve your clients for over three decades. Our specialized products include coverages for Transportation, Garage, P & C, Professional, Brokerage Property, Specialty Programs and many more. For more information about our products, we invite you to contact us today at (800) 282-8755.