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 - July 2023
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. Prior to Q1 2023, carriers pushed significant rate to combat rising loss costs and inflation which drove pricing up in most areas. While losses continue to escalate, an influx of new capacity, standard market re-emergence, and carrier employee turnover helped to temper rate particularly in more desired classes through end of 2022 and into 2023. The 2023 Q2 index illustrates that pricing increases have not slowed YOY. Rather a shift has occurred from predominantly rate derived increases to exposure and inflation linked increases as the economy bounced back post COVID.
2. The exception to this remains tough E&S classes such as habitational, public entity, wildfire-prone risks, and certain segments of construction and transportation where existing and emerging litigation trends continue to put pressure on carrier profits. In those cases, pricing is still being driven by rate needs and may be compounded by exposure increases. Many risks are undergoing limit restructuring to combat price increases by either increasing primary attachments, creating buffer layers, or utilizing quota share arrangements to attract more markets and increase coverage competition. YOY analysis in such scenarios becomes more difficult on a per-risk basis; however, on a portfolio basis the increase in accounts changing limit structures is noteworthy.