North American Property: How UIB has navigated these uncertain times.
Successful Industries in 2024
- Municipality
- Real Estate / Multi-Family
- Agriculture
- Marina / Docks
- Metals
Successful Niche Solutions in 2024
- Wind Deductible Buy-Downs
- Stand-Alone Terrorism, Active Assailant and Strike Riots, and Civil Commotion
- Excess Flood
- Water Damage Deductible Buy-Downs
UIB’s Successes in 2024
- 100% primary solution for a leading Bean company
- 50% primary solution for a Municipality on the Gulf Coast
- 100% full value solution for a Builders Risk in the Metal industry
- 50% Excess solution for a Municipality
- 100% Excess Flood capacity for a Builders Risk in the Real Estate Industry
- 100% Primary solution for a Marina & Dock in the Gulf Coast
- 100% Primary $100m Terrorism solutions for Real Estate/Multi-family schedules
Increased Competition
There has been a general uplift in available capacity with new markets coming to the table after being away for two or more years, additionally incumbent markets are keen to expand their position on business they hold. This has resulted in increased competition in H1 2024 within the London & International market as well as competing against Domestic markets.
Catastrophe Perils
Looking at Catastrophe perils, many markets had stopped writing new wind aggregate at the 1st of July, particularly in Florida and the Gulf coast, as the wind season is in full flow. Severe Convected Storm (SCS) is increasingly a factor for insurers, by example 70% of H1 2024 USD60BN of catastrophe losses have been caused by SCS.
Opportunities in London
There remains a good flow of new opportunities into London as certain industries or perils within the domestic market’s appetite remains challenging for 2024. As a team have seen over a 100% increase in new enquiries. Conversely renewals either in London or domestically have been under pressure as directives around rate reduction on existing business allows non-incumbent capacity to view the risk as new without the constraint of a maximum reduction threshold, regardless of rate adequacy of the risk.
Deductibles Remain Firm
Deductibles remain firm along with general terms and conditions. After four years of adjustment underwriters are resisting a return to attrition on a core book, bearing in mind Insurers are averaging 85-90% combined operating ratio, even after the rate fatigue Insured’s have endured since 2019. Therefore, pricing and capacity are currently the main levers in the market as it would likely not take much in terms of deductible reductions to change the dial on the ratios.
The Second Half of 2024
As H2 is well under way, the continuation of the improved market conditions for clients is anticipated, and as markets continue to seek to achieve business plans, competition to retain business will become more challenging for the remainder of the year. The picture may become clearer by the end of September as the meeting of reinsurance minds at the Monte Carlo Rendezvous will have taken place, and the predicted overactive hurricane season would have past it’s most active month.
key Contacts
