Trend | Range | |
---|---|---|
Non-CAT exposed | -5% to +5% | |
CAT exposed | -5% to +10% |
Insurers remain fully focused on valuations to demonstrate to their reinsurers that their portfolio data is robust, accurate and balanced when deploying capacity.
Index | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023* |
---|---|---|---|---|---|---|---|
ENR — Building cost index | 3.3% | 3.3% | 1.74% | 3.96% | 13.94% | 9.4% | 2.9% |
FM global — U.S. industrial buildings average | 1.2% | 5.2% | 1.73% | 1.42% | 18.40% | 11.1% | 1.5% |
RSMeans — 30 city average | 4.0% | 5.5% | 2.05% | 1.71% | 15.83% | 12.1% | 1.9% |
Marshall & Swift — U.S. average | 2.7 to 3.7% | 3.2 to 6.0% | 0 to 1.3% | 3 to 6.1% | 16 to 24.5% | 11.1% | 1.04% |
Catastrophe risk: The new normal is real
This map denotes the approximate location for each of the 23 separate billion-dollar weather and climate disasters that impacted the United States through August 2023
Source: National Centers for Environmental Information
As the 2024 market continues to stabilize and capacity comes back into the market, a shift in program design and delivery will be evident in every facet of the property market.
Trend | Range | |
---|---|---|
Non-challenged occupancies | -5% to +5% | |
Challenged occupancies/CAT-exposed | +7.5% to +12.5% | |
100% Florida accounts | +10% or greater |
With various challenges such as rising interest rates, inflation and the increased severity of natural catastrophe losses, it is imperative that our REHL clients work with their WTW team to develop a clear and concise renewal plan. Starting the process early with a commitment to quality data collection, as well as being able to articulate their valuation methodology, business continuity, disaster recovery and capital expenditure plans to underwriters will help them differentiate themselves from their peers.