Page 17 - 2016 State of the Market from AmWINS
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In the E&S personal lines market, the trends are similar to the Rodriguez, senior vice president and underwriter at AmWINS
commercial property marketplace, with plenty of capacity Access in Redondo Beach, California.
competing for business.
The Northeast has fully rebounded from any hardening caused
In addition to reducing pricing, carriers have been broadening by Superstorm Sandy. Standard markets are increasingly open
the coverage they provide and offering flat deductibles or to writing coastal cover and have combined with ample capacity
percentage deductibles as low as 1 percent on high-hazard from E&S carriers to create a buyers' market.
properties.
“In New England, we’ve seen rates decline year over year, and
While E&S carriers continue to maintain a strong presence in the favorable weather has made competition particularly intense,”
market, standard lines insurers are expanding their underwriting says Richard Martino, executive vice president and underwriter
appetite while targeting business they would have previously at AmWINS Access in Hopedale, Massachusetts.
deemed too risky. Traditionally challenging classes, such as short-
term vacation rentals, are having no problem finding a home. One bright spot for growth-focused retail agents and brokers
is that a requested FAIR8 plan rate increase is already pushing
The trends highlighted earlier in this report – a benign buyers to the private market, creating additional opportunity to
catastrophe environment, strong profitability for insurers and increase revenue.
the rise of alternative capital – have had a meaningful impact
on pricing in the personal lines segment as well. The growth of The Mid-Atlantic market presents a very similar picture to the
smaller, Demotech-rated carriers specializing in homeowners Northeast, with rates and deductibles at the lowest level seen in
insurance has also contributed to the continued softness in the years. However, there are signs that the downward spiral may be
personal lines space. slowing. “We have seen some leveling off in rates, and carriers
are starting to tighten their guidelines just a bit,” says Missy Klor,
In fact, the demand of the traditional insurance market coupled vice president and underwriter at AmWINS Access in Morehead
with the lack of a major hurricane has allowed Citizens Property City, North Carolina.
Insurance Corporation to reduce its policy count to fewer than
500,000 for the first time since the company’s inception in 2002. In today’s market, successful agents will often be the ones
who can quickly find the products and markets that best meet
On the West Coast, despite the annual threat of wildfires, their clients’ needs with comprehensive coverage and claims
personal lines property rates remain low and steady. “Fires servicing at a competitive price. When working with a wholesaler
always pop up, but the response efforts have been coordinated on harder to place risks, the service quality of the wholesaler can
quickly, so losses are well within expected levels,” says Lori be a direct reflection on the agent.
• Homeowners insurance is softening as a result of many of the same trends that are
driving down commercial property pricing.
• Flat deductibles or percentage deductibles as low as 1 percent on high-hazard properties
are readily found.
• Short-term rentals and other traditionally problematic classes can be placed more easily
than in the past.
• Competition is intense across all regions of the U.S.
8 Fair Access to Insurance Requirements
