AmWINS says adverse loss development has been a catalyst in this acceleration.
Two consecutive years with combined ratios exceeding 100% across the market has heightened the focus of management teams and underwriters to drive rate and reduce aggregate exposure.
Furthermore, Increasing rates are creating a deeper and broader change in the market.
AmWINS says the obvious tough classes – including frame habitational, recyclers, and open lot – were the first to be affected, but that the trend has now crept into broader classes and non-catastrophe exposed business.
“The message for retailers is that things are changing in property more quickly than expected, and the changes are deeper than anticipated,” said Harry Tucker, Executive Vice President and National Property Practice Leader for AmWINS.
“Along with rate increases, we are seeing more tightened risk selection, reductions in limits, increased deductibles, and close review of policy forms,” added Tucker.
However, AmWINS says the bright spot for clients is that the market is still well capitalised. “Carriers still want to write premium,” says Tucker. “The difference today is that they are applying a level of underwriting discipline we haven’t seen in quite some time.”