I recently sat through several Carrier Appetite Meetings with Property and Casualty Insurance underwriters. I think the consensus in Texas (Harris County) is that carriers can no longer call themselves Property and Casualty companies...they only want the casualty.
Each time, the same question is asked, "what is your appetite in Harris County?" Each time, we get the same answer..."not writing in Harris County."
Underwriters even go so far as to say that they want off of the accounts they've already written, and not to send them Property (even Lessors Risk) accounts. Travelers is increasing all Wind/Hail deductibles to 7% of the loss...some cases it's more.
How many non-active Hurricane seasons in the Gulf are needed before the Market gets better in Texas? I know we are supposed to be in for a bad one this year, but they said the same thing last year.
I write quake in California, so I can feel your pain for sure. I will tell you, though, that many of our quake clients in California would love to see a 7% deductible.....15% or 20% is getting to be the norm in the tougher areas like LA and San Francisco...and of course the price keeps going up, too.
Are you getting the same responses from your excess and surplus lines markets with regards to Harris County? That's an avenue you could try.
The E&S Market has the same take on Harris County. We've had to get deductible buy back policies in some cases because the lenders require everything under the sun.
"Insurance is a necessary evil, until you have a claim."
Interesting post. I also work in South Texas but I am not seeing as much pull back as you are talking about or the higher deductibles. Tier 1, yes, but Harris County, not so much. What kind of TIV are you looking at?
LaPorte I have seen and just about anything that close to the coast. But Harris County - especially if you are North of I-10 - I have not seen much of a change. Even with frame. What carriers?
We had hoped the quake market would start to turn by now, but so far my July renewals don't reflect it. I don't know, I would hope if we get through one more hurricane season with no large losses, the CAT property market will settle down.
Hi. I'm still studying for my P&C license and just wanted to say Hi and hope I can learn from all of you.
Technically I'm in Harris County but I live right at the Galveston County line in Clear Lake. When I noticed La Porte was mentioned, it got my attention. My husband is a builder in La Porte; has been for a few years now.
This kind of goes along with the gas or oil industry. The day of Katrina, oil and gases priced skyrocketed. We still haven't seen any relief. The truth of the matter is, we probably will not even notice the changes. Over time, more and more agents will be willing to pick up these policies. Then slowly over time the problem will be fixed. There will not be an exact date or time, it will be gradual. Loo at this post 5 years from now and this will help you understand what I am saying. Time is the only healing factor in these locations.
