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.
PROPERTY REDY® INDEX - October 2024
MONTHLY RENEWAL PRICING ANALYSIS
WHY YOUR RESULTS MAY DIFFER
The REDY Index shows pricing trends based on average property renewal premium on a broad range of accounts – in all 50 states, with varying loss histories, and a variety of perils and occupancies. Your results may differ substantially from the average shown above depending on these attributes and a particular account’s risk profile. 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 online (Premium/ Limit*100). The REDY Index is intended for educational purposes only.
ONGOING PROPERTY ISSUES
- In Q3 2023, the property insurance market reached the height of the recent cycle, driven by significant reinsurance market disruptions following Hurricane Ian in late 2022. The post-Ian turmoil peaked in July 2023. This period was marked by aggressive pricing, with deals becoming increasingly difficult due to constrained capacity and reduced competition. Overall, 2023 was heavily influenced by Ian’s aftermath, which had ripple effects across the reinsurance landscape.
- In Q2 2024, the market began to normalize, and by Q3 2024, clients experienced further price resets. The marketplace softening was largely driven by improved capacity, and more competitive pricing as new entrants and capital re-entered the market. Existing carriers showed optimism around pricing and terms in the current marketplace.
- While these conditions are expected to persist through the end of 2024, uncertainty remains regarding the potential impact of hurricanes Helene and Milton on the broader reinsurance market. However, unlike the reaction to Hurricane Ian in 2022, a knee-jerk response from the market seems less likely. Many direct writers have likely already factored potential reinsurance rate increases into their 2025 business plans, suggesting a more measured approach as the market continues to stabilize. It is important to note that the E&S property market comprises many micro-markets with pricing, capacity, and terms varying significantly depending on factors such as Total Insured Value (TIV), geography, occupancy, and specific risk characteristics.