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.

EXCESS & UMBRELLA REDY® INDEX - January 2024
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. In Q4, pricing continued to tend upward within the E&S Excess Casualty market. Slight easing in inflation helped moderate price increases for accounts with inflation-linked ratable exposures such as sales and payroll but had minimal impact on accounts with mixed or non-inflationary exposures. Furthermore, any relief was often counteracted by a renewed effort from carriers to push rate. Second half of the year, underwriting companies became more vocal about rising loss costs due to the continually deteriorating litigation environment; particularly in excess liability. Early indicators for 2024 show many carriers pushing for on average rate needs beyond trend to ensure better than break-even results. Favorable interest rates and investment income continue to support growth objectives, however inadequate prior-year reserving and expense ratio pressures will add to rate adjustment need to keep combined ratios in check.                                                            
2. As consistently stressed in our 2023 reports, this is not a onesize- fits-all market and independent market cycles by class of business are likely to be prolonged; some hardening while others soften. To navigate and stay ahead, it’s crucial to understand individual risk characteristics relative to underwriting pain points be it class, geography, coverage or other. Size of risk also matters as traditionally complex underwriting companies have expanded appetite and drive further competition in the SME and mid-market space. Proactively crafting a narrative around an insured’s exposures, safety and risk management culture and providing a complete and accurate submission remains key to attracting adequate capacity and influencing pricing results.