Property underwriting is becoming more stable and full of opportunity, with Richard Wood, Head of Property at Westfield Specialty, highlighting a disciplined approach to pricing and increased confidence in risk-taking heading into 2025.
Wood believes the market has significantly improved over the last four years and sees a landscape full of opportunity, with prices now fair and balanced. Recent market changes reflect growing confidence among underwriters to take on and manage risk.
This year, although two major hurricanes occurred, their costs were largely covered by insurers rather than the reinsurance market, with estimated losses under $50 billion. These events impacted earnings but did not severely affect the industry.
Looking ahead to 2025, Wood is optimistic. The property insurance market is now better capitalised, more stable, and has a clearer understanding of pricing. These improvements create a stronger market, which Westfield Specialty plans to take full advantage of.
Wood notes that while clients and brokers may push for lower insurance rates in 2025, the industry will respond carefully and maintain discipline.
“We will look to write a broad portfolio by occupancy and location and partner with clients and brokers who take a longer-term view of risk, recognising those who invest in the management of risk and look to remove attrition from the market. We intend to build relationships across the cycle to offer stability and predictability within our portfolio and ultimately to our insureds and reinsurance partners,” Wood concluded.
