Navigating Change in the Excess & Surplus Contract Binding Market

This Partner Perspective is part of a series brought to you by IAT.

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In the latest episode of What’s Brewing, Ben McDonald, Vice President of Underwriting for IAT’s Excess & Surplus Contract Binding Division, and Claire Rinker, Senior Underwriter, discuss the current state of the market, industry trends, and how underwriting is evolving in response.

Tune into the episode here: Excess and Surplus Binding | What’s Brewing

Below, we explore highlights from their discussion.

Market Trends: A Shifting Landscape

The Excess & Surplus (E&S) market has seen significant shifts over the past few years. Inflation has impacted liability, construction costs, and labor expenses, leading to a continued hard market in various sectors. While some areas, such as hurricane-exposed property, are showing signs of moderation, others, like California’s wildfire-prone regions, remain highly volatile.

Embracing Predictive Analytics

Technology is playing a bigger role in underwriting than ever before. IAT has implemented a new risk analysis tool that helps underwriters and agents price risks more accurately. By leveraging predictive models that assess credit scores, crime rates, and other risk factors, IAT is committed to delivering competitive pricing while maintaining profitability.

Catastrophic Risk: Wildfire vs. Hurricane Exposure

Underwriting for catastrophic risks requires careful analysis. In wildfire-prone states, IAT evaluates properties based on wildfire scores, location, and historical burn data. The underwriting team conducts thorough reviews, using satellite imagery and on-the-ground insights to assess risk. Meanwhile, in hurricane-exposed areas, advanced modeling tools help determine appropriate pricing and coverage levels.

Stability and Long-Term Commitment

What sets IAT apart in the contract binding space? According to Ben and Claire, it’s the underwriting expertise and a commitment to being a stable, long-term market. While some competitors jump in and out of market segments, IAT focuses on sustainable underwriting practices, ensuring consistency for agents and insureds alike.

Want to learn more about how IAT is navigating today’s dynamic insurance landscape?

Listen to the full episode of What’s Brewing now!