The REDY Index leverages CRC Group’s collection of actionable data – the wholesale industry’s largest. It provides critical pricing analysis monthly, giving you a snapshot of the marketplace. The REDY Index generates instant intelligence on pricing trends by industry or coverage, enabling our retail partners to set accurate data-driven expectations with their clients. Removing the guesswork empowers CRC team members to negotiate competitively, consistently producing better outcomes, better deliverables, and better results. Removing the guesswork empowers CRC team members to negotiate competitively, consistently producing better outcomes, better deliverables, and better results.

EXCESS + UMBRELLA REDY® INDEX - January 2025
MONTHLY RENEWAL PRICING ANALYSIS

WHY YOUR RESULTS MAY DIFFER

Results displayed above reflect average CRC Group excess and umbrella liability renewal pricing changes by month (over the previous 12 months). Results are limited to brokerage accounts that renewed in the same month as the prior year with the same total account limits. To remove outliers, the top and bottom 1% of accounts by YoY % change have been removed, as well as the top and bottom 1% of accounts by rate on line (Premium/ Limit*100). The REDY Index is intended for educational purposes only as individual accounts typically differ from average pricing trends.

ONGOING EXCESS + UMBRELLA ISSUES

1. Average pricing in Q4 2024 held steady compared to prior quarters. However, rate needs remained a moving and variable target, creating unexpected outcomes both positive and negative. A high volume of above average increases occurred in class segments targeted for remediation regardless of account specific loss experience. Exacerbated by heavy submission volumes for underwriters, substantial negotiation was required as was convincing carriers to apply an individual risk underwriting lens on better performing accounts.
2. More risks are requiring intensive marketing efforts, particularly where price increases are unpredictable, unsustainable, or terms and conditions do not meet requirements be it contractual or other. Prolonged capacity cutbacks have created complex tower structures and more carriers with which to negotiate. YOY price increases are forcing buyers to weigh priorities; some compromising on less than adequate coverage or reduced limits purchased. This dynamic is expected to continue unless loss frequency and severity trends begin to ease.
3. No significant changes in the statutory or litigation environment were noted to improve near term liability outcomes. In contrast, nuclear verdicts were reported as reaching another historic high in total cases and median value. Litigation funding remains opaque and new studies shed light on social inflation detailing how liability loss severity has far outpaced rate of economic inflation. Finally, similar studies detailed economic damages, both plaintiff demands and resulting awards, regularly represent the largest portion of claims, exceeding even medical costs in bodily injury cases.
4. With no effective way to combat these trends yet, it is expected carriers will remain focused on risk selection, rate increases and deal restructuring. In more extreme cases, venue avoidance and/or coverage restrictions under guise of remediation efforts are also likely to continue.