MAKING A SOFT LANDING
IN A HARD MARKET

A plethora of economic and climate conditions have contributed to the hardening of the commercial property market. Unprecedented inflation, geopolitical unrest, and catastrophic weather events have all played a significant role in this market shift. Is all hope lost? Certainly not!

Get the full picture of what a hard market means for your business’ bottom line and what you can do about it in our comprehensive whitepaper.

READ OUR WHITEPAPER

>$115 billion

Insured losses for natural disasters in 2022

$24.3 billion

Net underwriting losses for P&C insurance carriers in the first 9 months of 2022 – nearly quadruple the losses from the same period in 2021

SEVEN STRATEGIES TO OBTAIN OPTIMAL MARKET RESULTS IN A HARDENED MARKET

Here are some clear steps to help commercial property insurance buyers create the most favorable result possible in today’s challenging conditions:

Begin as many as four months before coverage is bound (or as far in advance as possible). Documenting your strategies will increase accountability for clients and brokers.

Understand how much coverage you’re purchasing and how deductibles impact your liabilities. Don’t let your brokers be complacent about the minimum insurance requirements for assets and evaluating creative program structures like deductible buydowns, deductible indemnity agreements, deductible reimbursement policies (captive), and parametric insurance (loss mitigation). Insureds with higher risk tolerances can lower premiums after reviewing for financial feasibility.

Keep up-to-date and accurate property schedules to maximize negotiations. Use cat modeling and other emerging analytics tools to structure your carrier RFP and enhance your negotiating leverage. Such resources can help estimate the likelihood of a loss, how much insurance to buy, and how much an underwriter should be charging you (most applicable to larger portfolios).

Most carriers are requiring higher replacement cost values for the assets they insure. Insureds and brokers need to confirm all assets are measured accurately. Be sure to evaluate the impacts of increasing square footage replacement costs as many months as possible before renewal.

Flooded with daily submissions, underwriters rely on data to rigorously evaluate your risk. Be sure to highlight specifics and the types of safeguards you have in place that make your property a preferred or favorable risk. When submissions are broad and incomplete, your risk will likely be put to the bottom of the pile and may not receive adequate consideration.

Both the broker and insured should have full policy forms and endorsements on file. Doing an audit of all policies ensures coverages are adequate and meet your goals. In a hard market, insurance companies will look to include endorsements and policy language that remove previously included coverages. Address all policy changes.

Work with your broker to hold stewardship meetings to keep everyone informed of current market conditions and what to expect at renewal.

HARD INSURANCE MARKET FAQS

A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.

A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.

A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.

A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.

A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.

A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.

A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.

A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.

A hard market occurs when there is increased demand for insurance coverage at a time that carriers are constraining supply and capacity, therefore restricting coverage terms and conditions.

A WORD TO THE WISE

Approach your next commercial property insurance renewal season with patience and a strategic plan. Connect with us for assistance in making sure you’re ready.

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FORTIFYING YOUR APPROACH IN THE FACE OF UNFAVORABLE MARKET CONDITIONS

The property insurance market may be hard and the economy may be riddled with uncertainty, but that doesn’t mean you’re powerless as a business decisionmaker. BRP is here to help our clients thrive even in the most trying circumstances.

FORTIFYING YOUR APPROACH IN THE FACE OF UNFAVORABLE MARKET CONDITIONS

The property insurance market may be hard and the economy may be riddled with uncertainty, but that doesn’t mean you’re powerless as a business decisionmaker. BRP is here to help our clients thrive even in the most trying circumstances.

FORTIFYING YOUR APPROACH IN THE FACE OF UNFAVORABLE MARKET CONDITIONS

The property insurance market may be hard and the economy may be riddled with uncertainty, but that doesn’t mean you’re powerless as a business decisionmaker. BRP is here to help our clients thrive even in the most trying circumstances.