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Excess & Umbrella REDY® Index March 2022

Umbrella REDY REDY Index Excess Liability REDY-Index Excess &amp

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 - March 2022
MONTHLY RENEWAL PRICING ANALYSIS

14.3% 17% 19% Mar 21 14.7% 21% Jul 21 14.5% 20% 24% Aug 21 14.9% 19% Oct 21 12.4% 19% 24% Nov 21 14.0% 21% Dec 21 14.7% 19% Jan 22 13.3% 14.6% 18% 18% 16.5% 15.5% 21% 24% Jun 21 16.2% 16% 24% Sep 21 140 120 100 80 60 40 20 19% 20% Apr 21 21% 22% May 21 Feb 22 Mar 22 0 20%+ 32% 33% 28% 35% 21% 24% 24% 30% 29% 26% 30% 34% 26% 30% 28% 23% 34% 27% 26% 27% 26% 26% 29% 31% 25% Average YoY Renewal Change Average YOY Renewal Change No Increase No Increase 1% to 9% 10% to 19% 26% 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. 23% 1% to 9% 10% to 19% 20%+

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

  • New carriers are entering the space and aim to take advantage of the disruption in the excess marketplace. Several new carriers have been announced, though most new entrants are still in formation or just getting started. This has also created high demand for experienced underwriters, and there are not enough available to fill all the open positions.
  • Excess losses are still escalating due to social inflation; the self-reinforcing trend of higher verdicts leads to higher expectations for awards and higher settlements. Third-party litigation funding is gaining momentum as investors look to profit from this judicial climate.
  • Difficult classes for excess include high hazard products, transportation-related accounts, habitational, hotels, public-entity, higher education, residential & New York construction, and any risk with sub-par loss experience.

 

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