ERRORS + OMISSIONS REDY® INDEX - January 2025
MONTHLY RENEWAL PRICING ANALYSIS

WHY YOUR RESULTS MAY DIFFER

Results displayed above reflect average CRC Group Errors + Omissions (E&O) 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.

EMERGING ISSUES BY E&O MARKET SEGMENTS

Misc. E&O - The market is relatively stable with flat or slight decreases in rate. Increased competition is likely due to new entrants. Carriers are more likely to consider tougher accounts such as those in the Pseudo F.I. space or to provide specialized coverages such as contingent BI/PD, Cost of Corrections, Contract-specific Limits, First-dollar Defense, and sub-limits on TCPA or other risk-specific items. Tougher classes currently include Franchise Business, Public Officials/ Schools, M&A Consultants, Quasi Financial, Interim Management, Staffing/PEO, Title Agents, Developers, Social Services, and Foster Care/Adoption.

A&E - Rates are flattening out slightly as A&E pricing lags behind some other lines of business that are softening. Certain disciplines remain somewhat hard. There have been a few new markets enter the A&E space, mostly MGAs with Lloyd’s backing looking for small, clean business. These are not market changing players, but it has added some capacity. Rate increases of 3%-12% are expected on accounts in certain jurisdictions such as New York, California, and Florida or on difficult classes including Geotech, Structural, and Soil. Some carriers are still adjusting rates to better align with the marketplace with competition driving the rates down a little. Also, more carriers are entering tougher market spaces. On smaller clean business, competition is greater, and rates are expected to remain flat or rise up to 5% while mid-market business rates will increase 3%-8%. A few A&E markets are carefully adding coverage enhancements to their policies. Insureds are becoming more diverse which has led to more marketplace questions and decreased competition in some scenarios.

Lawyers - With the influx of additional capacity, rates are lower. Many carriers expect to see a rise in claims due to post-pandemic cases resolving and rising defense costs. Newer carriers do not have legacy claims to contend with and have been more favorable on rate decreases on more sizable firms – seeing flat rates for small law firms baring retro date increases or claims. There are very few insurers willing to entertain solo practitioners and smaller firms, but pricing has remained competitive. Rate increases are typically occurring as a result of the retroactive date maturing and are expected to remain steady.

Real Estate - The marketplace is becoming more aggressive. Residential/Condo projects are taking a bit of a rate increase. There are new entrants on the Real Estate Developers (RED) side leveraging endorsements to grant similar coverage offered by established carriers. We have seen even more aggressive competition for larger insureds from new market entrants. Renewals are coming in flat or seeing up to 5% decreases when asked to market extensively. It’s important to market all sizeable renewals and approach markets that may not typically entertain certain spaces. Opportunity exists to seek out and acquire new real estate business.