4 Growing Trends in Real Estate Insurance Underwriting
Here are four important trends that are expected to occur within the real estate insurance market:
1. Market correction
We expect a market correction after multiple hurricanes occurred in the Caribbean, U.S. Virgin Islands, Puerto Rico, along with fires in California and earthquakes in Mexico. The losses from these catastrophes are expected to exceed over $100 billion dollars in damages.
2. More submissions, less accounts
Underwriters are seeing more submissions due to customer fears in the current market, but writing fewer accounts because they’re chasing the buck.
3. Property underwriting is more scrutinized
Past losses are accounted for now more than ever.
4. Detail, detail, detail
Underwriters want to fill gaps of knowledge on any particular property with dollars. Fill that gap to avoid any unnecessary overpricing.
To keep property rates low, talk to a real estate insurance broker. Then, work with them to start the submission process as early as possible, tailor the submission to showcase the risk in the best fashion possible and implement risk management techniques to control losses. Work with a broker who’s on top of the market, its trends, and is constantly benchmarking data to help leverage underwriters. At Assurance, we do just that while leveraging our relationships with markets.
By understanding these four real estate underwriting trends, you’ll be in a much better financial position. For more information, contact a member of the ‘A’ Team!
- 2018 Real Estate Industry Outlook Video
- Real Estate E-Book
- Did Your Insurance Carrier Value Your Property Correctly
- Fannie Mae and Freddie Mac: 3 Property Insurance Requirements Often Confused
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