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 - October 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. Buoyed by improved rate and underwriting conditions, carriers continue to execute upon significant excess casualty growth strategies; expanding product offerings and demonstrating a willingness to negotiate moderate rate increases for (perceived) better performing classes or individual accounts. Despite this relatively favorable environment, pricing has trended upward for many insureds due to inflation and exposure increases in an expanding economy. Pricing combined with capacity challenges also remain front and center for difficult and severity prone risks. Hard market conditions for these accounts have not eased as carriers continue to exit or restrict capacity and terms while simultaneously pushing large rate increases on top of exposure growth.
   
   
2. Looking ahead, a cautious approach is likely required. Smoke signals are starting to rise from reinsurers over rapidly deteriorating prior years while carriers are struggling to combat trends such as litigation funding and the frequency of severity, driving loss costs ever higher. Without tort reform, which does not appear likely in near term, or a reliable way to drive down claims costs, carriers may feel pressure to revisit rates and risk selection.