Hi, I’m Dan Post. I’m here with Tom Torcia, who’s just come back from some interesting conversations you’ve had in local markets in New York, Ohio, and Pennsylvania. Can you talk about some of the key themes that you’ve gotten from the reinsurance conversations there?
Yeah, very property focused. Being in Pennsylvania, New York, and Ohio, it’s obviously critical a lot of the conversation has been about handling the property marketplace.
It’s great to hear from both the reinsurance providers and brokers on some of the key trends going on in property. And one of the things I think has been very clear, if you’ve been in the audience and you’re hearing their point of view, capacity has been challenged.
When capacity is challenged, it really forces the primary carriers to focus on core underwriting and pricing discipline. So, you’re seeing more of that focus and energy today, increasing their deductibles, addressing risk sharing with customers and really trying to find that balance of being able to address the increasing rising costs and passing that in a segmented and thoughtful way to their overall book.
I’ve seen a lot of companies really addressing it in a number of different ways. Some of it through rate changes either across the whole book or segment ways, making sure you’re keeping up to date on building costs through insurance to value and keeping your properties up to speed on that. Also doing re-inspection. I think that’s one-way companies are addressing those increased costs and making sure that they’re appropriate at a local level.
One of the last things I think was really a call to action to the industry is continuing to use data and analytics to be thoughtful of risk selection. But not just on the back end. I think doing it on the front end as well.
And I think we’re going to continue to see carriers increase their advanced analytics capabilities so that they’re getting the right type of profile and mix that they feel comfortable with on the front end as they do their due diligence on the back end and continue to improve their overall portfolio.
There’s optimism. There is certainly an area of opportunity for the industry to seize this opportunity in the marketplace. I’m really encouraged by some of the conversations I’ve been a part of in the associations and hearing with the partners we do have that are really focusing on how to continue to improve their overall property portfolio. And setting their book up for that long-term sustainable profitable growth.