NY Property Insurance Market is collapsing

[NY independent]

So we handle the insurance for a large, fire resistive, sprinklered, 300,000 square foot, 13 year old office building in midtown Manhattan. $120 mill TIV split between two A+ XV licensed carriers. Premium was around $600K. Loss ratio was 11% with 6 years of loss runs. These Carriers both issued non renewals due to estimated RC of $400 mill and "exceeds our property capacity available". We had to use 14 surplus lines carriers (London/Bermuda/, etc) with terrible terms to rewrite. The premium is now $8 mill. The building owner (our insured) is now selling the property. (25% minimum earned). The rent roll can't support the insurance costs, taxes, mortgage rate increase, etc. Tenants are leaving every month for greener pastures so her prospects are bleak.

 

[AZDave]

This is just so wrong in so many ways. Our job is becoming much more difficult as our world is falling apart.

I'm trying to stay positive for 2024, but is there any good insurance news out there?

 

[marindependent]

I get the feeling 2024 is going to be a Fun year in the insurance world.

 

[Markthebroker]

So we handle the insurance for a large, fire resistive, sprinklered, 300,000 square foot, 13 year old office building in midtown Manhattan. $120 mill TIV split between two A+ XV licensed carriers. Premium was around $600K. Loss ratio was 11% with 6 years of loss runs. These Carriers both issued non renewals due to estimated RC of $400 mill and "exceeds our property capacity available". We had to use 14 surplus lines carriers (London/Bermuda/, etc) with terrible terms to rewrite. The premium is now $8 mill. The building owner (our insured) is now selling the property. (25% minimum earned). The rent roll can't support the insurance costs, taxes, mortgage rate increase, etc. Tenants are leaving every month for greener pastures so her prospects are bleak.

I am here in Ca.

Please tell me more about what a mess NY is.

 

[Al3x Lee]

Can't wait to tell my grandkids one day about the 2024 insurance market collapse

 

[Brandon Blood]

If it stays like this I am going to have to talk about going strictly salary. The commissions are not what they should be and thank god for renewals. I could make more selling Dish at this point! Something has to change soon or I am going to leave the industry.

 

[NY independent]

Brandon, I would focus on writing small business with your direct agency carriers (assuming you have them). BOPs, WC etc. Things that are relatively "easy" that don't need underwriter review. Avoid large property, commercial auto, and construction accounts. If you can get through 2024, I think 2025 will be much better. Commissions have been reduced significantly for most agencies, so asking for more money is probably not in the cards these days.