Misc. E+O - In 2024 MPL pricing saw marginal increases on most MPL accounts (i.e., not Lawyers or A+E). Additional price increases are not likely in 2025. There is substantial capacity available in both the standard and non-standard markets. MGA entrants to MPL continue to disrupt rate increases. E&S volume has dropped, but when handling more defined professional business such as lawyers, insurance agents, accountants, etc. More professionals are purchasing E+O or Miscellaneous Professional Liability, whether by choice or because client contracts often require it. Available capacity depends on the size of the account. Most insurers on this line have greater flexibility on accepted classes and terms/conditions.

A+E - 2025 will be very similar to 2024. The marketplace remains stable, with a slight slowdown in submission volume. There is still a large appetite for artisan contractors. Capacity is readily available as the product line is experiencing a softer cycle. Rates are flattening out a bit as A+E pricing lags behind some other lines of business that are also softening. However, certain disciplines remain \harder, and some carriers are still adjusting rates to align with the marketplace better. Rate increases of 3% - 12% are expected on larger accounts in certain jurisdictions such as New York, California, and Florida or difficult classes including Geotech, Structural, or Soil. Revenue growth results in premium increases in regions where construction is still booming. Accounts with a higher concentration of residential work, especially on condominiums, remain challenging as condo claims continue to be problematic for most insurers. In many situations, clients dabbling in these projects have decided to walk away for insurance reasons. Some insurers are non-renewing accounts, primarily due to claims. A short list of insurance companies have completely exited this class within the last few months, and a similar number have entered the space. Newer markets generally do not target the problematic accounts that result in the exit of other insurers.

A few new markets have been entering the A+E space, mostly MGAs with Lloyd’s backing looking for small, clean business. These are not market-changing players, but it has added some capacity. On smaller, clean business, competition is greater, and rates are expected to remain flat or rise to 5%, while mid-market business rates will increase by 3% - 8%. A few A+E markets are carefully adding coverage enhancements to their policies. Insureds are becoming more diverse, leading to more marketplace questions and decreased competition in some limited scenarios.

Lawyers - With the influx of additional capacity, rates are lower. Many carriers expect to see a rise in claims due to post-pandemic cases resolving and rising defense costs. Newer carriers do not have legacy claims to contend with and have been more favorable on rate decreases on more sizable firms – seeing flat rates for small law firms barring retro date increases or claims. There are very few insurers willing to entertain solo practitioners and smaller firms, but pricing has remained competitive. Rate increases are typically occurring as a result of the retroactive date maturing and are expected to remain steady.

Real Estate - The marketplace is becoming more aggressive. Residential/Condo projects are taking a bit of a rate increase. There are new entrants on the Real Estate Developers (RED) side leveraging endorsements to grant similar coverage offered by established carriers. We have seen even more aggressive competition for larger insureds from new market entrants. Renewals are coming in flat or seeing up to 5% decreases when asked to market extensively. It’s important to market all sizeable renewals and approach markets that may not typically entertain certain spaces. Opportunity exists to seek out and acquire new real estate business.