The marketplace for real estate insureds has changed significantly since the last quarter of 2022 and throughout the first quarter of 2023. A few examples include:
- More insureds are finding that they need to use the excess and surplus (E&S) lines markets to secure coverage. In 2022, surplus lines premiums tallied a record high of $100 million.
- Interest rates in the US are the highest since the 2008 financial crisis, to combat persistently high inflation. As a result, real estate insureds are facing decreasing market value of assets against simultaneously increasing replacement cost values of those same assets.
- Florida passed sweeping legislation aimed at revitalizing its insurance marketplace.
- Environmental, social and governance (ESG) and reinsurance are now prevalent topics in renewal conversations with insureds.
This update provides key insights into the current state of the Real Estate and Hospitality insurance market, including a marketplace overview by line of coverage