Amwins has released its State of the Market: A Focus on Builders Risk report, highlighting a notable shift in market dynamics from the previous year, characterised by increased capacity helping to drive more competitive terms and conditions.
The rise in capacity is fueled by both new market entrants and existing players expanding their reach. This surge has led to oversubscribed placements and improved negotiation leverage for brokers.
Despite this growth, challenges persist, particularly in areas like New York for catastrophe (CAT) coverage and coastal regions facing sub-limits on Named Windstorm (NWS) risks. Areas with high crime rates, such as the Bay Area/Oakland, Portland, downtown Los Angeles, Nashville, and Phoenix, are experiencing higher insurance rates and deductibles.
Additionally, factors like inflation, interest rates, and labour shortages continue to impact the market, affecting project costs and schedules.
Amwins also observes a surge in capacity (non-CAT) in the wood-frame construction market, with primary markets expanding their appetites, reducing the necessity for multiple placements. Renovation projects remain challenging to place, with new entrants targeting this sector, creating fresh opportunities for carriers.
Grant Chiles, Executive Vice President and National Construction Practice Leader at Amwins Brokerage, underscores the report’s value in understanding the evolving landscape of Builders Risk insurance coverage.
He emphasises, “Our detailed analysis equips brokers and clients with the necessary tools to navigate the complexities of today’s market, helping them secure the best possible terms and pricing for their clients’ needs.”
“In today’s competitive market, having access to such detailed, actionable intelligence can make all the difference,” Chiles concludes.
