Where has the time gone? It feels like just yesterday we were getting ready for Beryl, and now Pumpkin Spice season is here!
With the change in the weather outside, there is some fantastic news blowing into town. Despite experiencing above-average Gulf activity, Southeast Texas has been surprisingly fortunate. Especially in light of this year’s storm season predictions (which suggested a potential crisis akin to a property insurance Y2K). Consequently, the property insurance market has brought back a term we haven’t encountered in quite some time…
“Equilibrium!”
This is encouraging, as we are beginning to see certain carriers & industry sectors trending in a positive direction. Premiums, carriers, and customers are now experiencing a more balanced approach to terms and conditions, unlike recent years when a 25% renewal increase was the norm…
However, it’s important to note that the estimated losses from Beryl are expected to be between $2.5 billion and $4.5 billion, according to Moody’s. So, although we won the war, we did lose a couple battles along the way…
Key Takeaways from Q3:
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Trending analysis for 2024 indicates that Property Insurance is in a strong position, and finally moving towards equilibrium!
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Property Insurance is on an upward trend, and we anticipate that carriers will start re-entering the Southeast Texas market as we approach 2025. (Could we see additional pricing/capacity improvements in 2025?)
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While the Casualty (liability) market continues to face challenges, especially concerning commercial auto and service-related sectors. (Please see trend at the bottom of page 4 & top of page 6)
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Now more than ever, liability insurance is experiencing pressure due to increased pressure from litigation & frivolous suits. (Out of the frying pan & into the fire.)
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This situation is resulting in increased scrutiny of pricing and terms by carriers, which we believe will ultimately impact market availability for consumers later this year.
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IF YOU HAVE NOT INSTALLED DASH CAMS, DO NOT WALK – RUN TO THE STORE NOW! ???? You will thank me.
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As a result of these updates, we are still working harder than ever to put your business in the best position to succeed. So, if you are sick of paying too much for your commercial insurance – please reach out to our team as we would love to see how we could help!
