While some insurance firms are pulling out of the troubled Florida property insurance market, Orchid Underwriters Agency is expanding its role in coastal states by partnering with R&Q Accredited, the companies announced this week.
“The frequency of severe coastal events is challenging for everyone, from insureds and their agents all the way through to carriers and their reinsurance backers,” said Steven Carlsen, CEO of Vero Beach-based Orchid. “The creativity of our two companies has led to a program that will bring flexible solutions to the market in a sustainable way.”
Orchid has specialized in catastrophe-exposed property insurance. Accredited, part of Randall & Quilter Investment Holdings, entered the U.S. market two years ago and has focused on program management and legacy insurance, according to a news release.
The Accredited program will become part of Orchid’s algorithm, which adjusts for risk aggregation and other factors, the company said.
“We have spent a lot of time updating our pricing view to adapt to the changing environment on both the attritional and CAT sides,” said Harshali Dhabalia, program leader at Orchid Insurance. “We think the traditional models missed significantly in recent events, so we have had to make proprietary adjustments to better account for the risk we are underwriting today. There are going to be risks where we are not competitive, and we are ok walking away from those.”
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