Good Morning, Everyone!
For those of you who haven’t had a chance to look at the news or the weather, I thought a “Q2 – State of the Market” might be a good way to get everyone up to date. As of 06/18/2024 – We officially have our first tropical storm, comically nicknamed “Fat Alberto”. However, this is anything but funny for native Texans as it heads towards our Gulf Coast Region with “tropical storm force winds extended up to 290 miles outward from the core of the disturbance”. These developments further solidify the NOAA’s prediction that there is an “85% chance of an above normal season…forecasting a range of 17-25 total named storms (winds of 39mph or higher)”.
United States Could Face Record Hurricane Season (teamrubiconusa.org)
Key Factors Influencing Commercial Property and Casualty (P&C) Insurance Market in Texas
- **Natural Disaster Risk**: Texas is prone to natural disasters such as hurricanes, floods, and tornadoes, which significantly impact our insurance market. As of 06/18/2024, the Greater Houston Metroplex has already endured more than $5 Billion in damages following the 2024 Derecho “considered by many the worst damaging wind event to affect Houston in 25 years”. Then, with an active storm season in route, many carriers are drastically trying to reduce their Texas exposure.
- Taking steps to protect your property by promoting facility maintenance & improvement is more important now than ever. Be proactive, not reactive when it comes to protecting your business.
- Underwriting and Pricing: Insurers in Texas face challenges related to underwriting risks associated with natural disasters, as well as evolving regulatory requirements. Pricing strategies vary by industry and geographic location, and Houston has been given a “black eye” due to increased litigation and settlements taking place in our market. As a result, many insurance carriers are starting to adjust their pricing models to reflect the litigious nature of Texas’ market.
- Insureds should make it a priority to look best in class, carriers are looking to cull their “risky business” and prioritize their “best performers” so be sure you stand out… In a good way!
- “An ounce of prevention is worth a pound of the cure.”
- Insureds should make it a priority to look best in class, carriers are looking to cull their “risky business” and prioritize their “best performers” so be sure you stand out… In a good way!
- Technology and Insurtech: Like the broader P&C insurance market, technology and insurtech innovations are playing a crucial role in Texas. Insurers are leveraging data analytics, artificial intelligence, and digital platforms to enhance underwriting accuracy, claims processing efficiency, and customer engagement. This has caused insurers to drastically reform their target market, and with the market bearing increased premiums – carrier as able to maintain revenues through a more selective underwriting process.
- With improvements in analytical information, insurance carriers are better educated allowing them to be more selective in their underwriting & customer selection.
- If you have been putting off engaging a safety plan, installing dash cameras, tracking certificates of insurance – make those changes now! Don’t be the customer they are looking to off-load, if there are areas you need to improve don’t wait…
- Cybersecurity and Liability: With the increasing prevalence of cyber threats, Texas businesses are prioritizing cybersecurity insurance coverage. Insurers are expanding their offerings to address cyber liability risks and provide tailored solutions to businesses of all sizes.
- If you don’t have cyber, please buy it. It is very affordable, and it can be come a bigger headache than a hurricane for most businesses!
- No further notes, get a quote from someone you trust & sleep good at night.
- If you don’t have cyber, please buy it. It is very affordable, and it can be come a bigger headache than a hurricane for most businesses!
Q2 has gone as well as we could have hoped considering all the bizarre weather conditions, but as we proceed into a hot summer & active storm season – please continue to prioritize your employee safety/hydration and facility management. If you have any questions or if we can ever help, please don’t ever hesitate to contact our office as we look forward to helping your business “navigate life’s storms with ease!”
