Real Estate Insurance Market
Current Trends & 2023 Outlook
Over the past five years, the real estate property and casualty insurance
market has been challenging, as industry losses have impacted insurance
carrier capital and profitability. While the property market is currently
front and center, the casualty lines continue to see upward rate pressure
albeit at a moderating pace.
The following summarizes the current state of the insurance market for
companies across the real estate industry.
Although overall market trends are important to understand, the
individual attributes of a specific insurance buyer or asset are what drive
results. For example, market segment (commercial versus residential),
geography, natural catastrophe exposure, construction type, deductibles,
valuation and losses all are critical to determining renewal outcomes.
Support from experienced and knowledgeable brokers can also contribute
to more favorable results.
2 | Real Estate Insurance Market Under Pressure
Property insurance: How did we get here?
The combined effects of three inflection points over the past five years have helped create a property market that
can be exceptionally difficult for real estate industry companies.
1: Hurricanes Harvey, Irma and Maria
• The destruction caused by Harvey, Irma and Maria across Texas, Florida, and Puerto Rico in 2017 was the start
of a period of historically high catastrophe loss trend for insurers.
• Accumulating losses from these events, along with inflation, low interest rates and other macroeconomic
headwinds, have resulted in the steady erosion of capital in the insurance and reinsurance markets.
2: Hurricane Ian
• Hurricane Ian represented a significant event for an industry that was already under stress.
• Changes in the primary and excess property insurance market are being driven by adverse post-Ian
developments in the reinsurance marketplace, which insurance companies access to move portions of their
own risk off their balance sheets