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Excess & Umbrella REDY® Index June 2022

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The REDY Index leverages CRC Group’s collection of actionable data – the wholesale industry’s largest. It provides critical pricing analysis monthly, giving you a snapshot of the marketplace. The REDY Index generates instant intelligence on pricing trends by industry or coverage, enabling our retail partners to set accurate data-driven expectations with their clients. Removing the guesswork empowers CRC team members to negotiate competitively, consistently producing better outcomes, better deliverables, and better results.

For excess & umbrella renewal pricing in June, the broader market seems to reflect a decrease in the amount of premium increases; however, Q2 results illustrate some exposure increases (likely due to inflation) reflected in the graph data because it’s measuring premium increases rather than rate increases.

 

EXCESS & UMBRELLA REDY® INDEX - June 2022
MONTHLY RENEWAL PRICING ANALYSIS

19.3% 140 120 100 80 60 40 20 15.5% 16.2% 17.7% 14.7% 14.5% 14.9% 14.7% 14.6% 30% 21% 21% 16% 19% 29% 26% 20% 24% 19% 21% 19% 24% 18% 18% 14% 20% 21% 34% 30% 12.4% 14.0% 13.4% 23% 26% 28% 13.3% 27% 27% 27% 34% 30% 24% 26% 24% 28% 27% 27% 26% 31% 28% 26% 25% 24% 24% Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 0 1% to 9% 10% to 19% 20%+ 1% to 9% 10% to 19% 20%+

WHY YOUR RESULTS MAY DIFFER

Results displayed above reflect average CRC Group excess and umbrella liability renewal pricing changes by month (over the previous 12 months). Results are limited to brokerage accounts that renewed in the same month as the prior year with the same total account limits. To remove outliers, the top and bottom 1% of accounts by YoY % change have been removed, as well as the top and bottom 1% of accounts by rate on line (Premium/ Limit*100). The REDY Index is intended for educational purposes only as individual accounts typically differ from average pricing trends.

ONGOING EXCESS & UMBRELLA ISSUES

  • Some standard line carriers have come back into the excess marketplace on particular classes. In addition, new carriers are entering the space and aim to take advantage of the disruption in the excess marketplace. Several new carriers and MGA’s have been announced and are in formation, with many of them now accepting submissions. This has created high demand for experienced underwriters, and there are not enough available to fill all the open positions.
  • Excess losses are still escalating due to social inflation; the self-reinforcing trend of higher verdicts leads to higher expectations for awards and higher settlements. Third-party litigation funding is gaining momentum as investors look to profit from this judicial climate.
  • Difficult classes for excess include wildfire, high hazard products, transportation-related accounts, habitational, hotels, public-entity, higher education, residential & New York construction, and any risk with sub-par loss experience.

 

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