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. Removing the guesswork empowers CRC team members to negotiate competitively, consistently producing better outcomes, better deliverables, and better results.
EXCESS & UMBRELLA REDY® INDEX - April 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
- Q1 2024 began with uncertainty as reinsurance treaty negotiations ran late and carriers rode the tide of increased EOY 2023 pricing straight into the new year. Rate adequacy needs amid rising loss and expense costs resulted in price pushing throughout Q1 and fresh looks at capacity management; a trend expected for the remainder of 2024.
- Despite such concerns, E&S carriers are actively pursuing growth objectives and benefited from increased submission volumes in Q1. Capacity and rate negotiation are available for better performing classes, yet a market chasm remains for distressed accounts, notably those exposed to severity driven premises or products-related bodily injury and auto losses. Continuous refinement of appetite and rigorous risk approval criteria are expected for distressed classes as is potential use of facultative reinsurance to provide capacity solutions.
- Claims reporting and handling are areas to watch going forward. Primary layers are under new pressures as respects defense costs and settlement to avoid escalation. Carriers may seek to cap costs or force defense outside of retentions. Meanwhile, excess carriers are voicing concerns over lack of timely loss notice, critical for investigation and strategy setting amid large demands and nuclear verdicts.