Parametric insurance has made its biggest impact so far with catastrophe bonds covering large-scale risks, such as hurricanes and earthquakes, but the concept is becoming more common in commercial and residential insurance. It’s called parametric because rather than responding to a specific loss, the coverage pays out when an agreed “metric” such as wind speed or ground shaking reaches or exceeds certain intensity. Insurers are offering such coverage based on a wide variety of other metrics, including barometric pressure, rainfall, average snowfall, river water levels, storm surge as measured by tide gauges and even hotel occupancy rates.

From the Empire State Building to the Freedom Tower and the Hudson Yards project, New York’s construction industry has earned a global reputation for innovation. That vibrant spirit, however, has been dampened by a unique labor law dating back to the 1880s governing falls at construction sites. Commonly referred to as the New York’s Scaffold Law, this section of the Labor Law has driven overall construction costs higher, sent insurance premiums soaring above levels for other states, and led some major carriers to leave the market altogether. Those challenges make it imperative to work with brokers specializing in this complex and constantly changing market.

Insurisk is CRC Group’s exclusive products facility has recently launched CAT+, an A rated property capacity for middle market business that is primarily CAT-exposed. CAT+ can accommodate costal exposure risks from Texas all the way to the Carolinas.

Buyers have grown used to price cuts in the property market in recent years, but insurers are now taking a harder stance. Insurers are seeking additional premium wherever possible and applying stricter underwriting, particularly to property valuations. Rate increases seem to be gaining traction as leading markets pare back on unprofitable lines. Still, those viewed as good risks can expect to do better than more challenging exposures.

Will premiums increase? Are terms and conditions changing? What lines of business have limited markets? Which lines of business have excess capacity? Here’s what clients can expect in the marketplace for 2019 in a quick and easy to read reference guide.