Page 19 - 2016 State of the Market from AmWINS

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New York construction, and unique done, the underwriting process is Doug Garfinkel, executive vice president
accounts,” says Jim Conroy, executive not necessarily any easier. In fact, and casualty broker at AmWINS
vice president and casualty broker at underwriters have recently become Brokerage in Chicago, Illinois.
AmWINS Brokerage in New York City. tighter on controls, particularly around
Carriers also remain willing to insure checking subcontractor agreements to How long robust activity will continue in
projects that convert mid-stream from ensure they have proper risk transfer, construction is anyone’s guess. Expect
apartment to condo or commercial to hold harmless, and additional insured current insurance market conditions to
condo, as well as traditional wrap-up agreements, and that subcontractors are remain throughout 2016 and beyond.
programs. carrying the proper limits of insurance.
“We will have to get to a point where
However, there are a few speed bumps Familiarity with the space is necessary building vacancy rates increase,” Villar
for agents and brokers, starting with to navigate through market obstacles. says. “It’s not a question of if there’s
movement among underwriters at top “Sometimes it’s not the quote that makes going to be a construction slowdown, but
casualty markets. the difference in the purchase decision; when it’s going to happen.”
it’s the loss control, claims, and other
“Recent mergers and acquisitions, ancillary services that are provided,” says
as well as movement among senior
leadership and underwriters, has resulted • Strong capacity in builders risk for all types of construction projects has rates at
in changes in appetite,” says Terrence 10-year lows.
Villar, executive vice president and
casualty broker at AmWINS Brokerage in • Underwriters are increasingly willing to broaden terms and lower deductibles.
Los Angeles, California. “With that said,
as one carrier pulls back, another one or • With increased M&A activity among casualty underwriters, agents and brokers
two open up. At AmWINS, we know who need to be able to effectively navigate the market.
the underwriters are and where they go,
so we are able to connect and keep up • Price is not the only factor to evaluate when buying coverage.
with the changes.”

Although most deals can still get