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.
PROPERTY REDY® INDEX - January 2023
MONTHLY RENEWAL PRICING ANALYSIS
WHY YOUR RESULTS MAY DIFFER
The REDY Index shows pricing trends based on average property renewal premium on a broad range of accounts – in all 50 states, with varying loss histories, and a variety of perils and occupancies. Your results may differ substantially from the average shown above depending on these attributes and a particular account’s risk profile. 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 online (Premium/ Limit*100). The REDY Index is intended for educational purposes only.
ONGOING PROPERTY ISSUES
- The Property market was already tightening prior to Hurricanes Ian’s landfall. However, Ian’s high estimated loss numbers have largely proven valid, and the impact on the reinsurance market has been immediate and substantial. Following 1/1 E&S property treaty renewals, all the possible projections of change have been realized. These outcomes have included restricted capacity resulting in shared and layered placements for TIVs of all sizes on inland as well as coastal risks, further pressure on rate, and increased retentions as well as pressure on commissions.
- While we saw rates continue to rise in Q4, adjustments to terms and conditions as well as rate should accelerate in Q1 and throughout 2023 due to the impact of changes in property reinsurance. Driving this acceleration is a hyper-focus on inflationary concerns such as valuation as well as dramatic changes in E&S reinsurance structures including cost increases on loss-free business, increased retentions, and a reduction in ceding commissions.