Secondary perils, which were once considered supplementary, are now said to be taking a “central role” in insurers’ considerations as we approach year-end 2023 and into 2024, according to the latest edition of the REDY Index by CRC Group.
This is clearly demonstrated, as in light of the unprecedented losses experienced in H123 due to secondary perils, carriers are now placing “heightened emphasis” on refining underwriting and risk selection strategies.
The Index also highlights how the market is constantly facing a variety of challenges across various business classes, particularly habitational and manufacturing occupancies.
Habitational risks, which vary based on a number of factors, including geographical location, age, values, and condition, encounter carrier restrictions or outright exclusions.
Furthermore, manufacturing risks face intricacies tied to specialised equipment, hazardous materials, and complex operational processes.
According to the Index, insurers are actively reevaluating underwriting strategies tailored to these specific classes.
The Index also states that adapting and employing innovative approaches in program design are vital to navigating the evolving risk landscape, as well as ensuring sustainable coverage in these demanding sectors.
The REDY Index by CRC provides critical pricing analysis on a monthly basis to offer insights on pricing trends by industry or coverage.
In related news, CRC Group recently appointed three new executive leaders.
Jessica Marshall was appointed as Chief Marketing Officer, while Mike Baeurle was named Chief Client Officer, and Curtis Moore became the new Chief Administrative Officer of CRC Group.
