The high-net-worth (HNW) homeowners’ space is in its “hardest market in decades”, sources have told Inside P&C, as carriers retrench capacity and rates continue to accelerate with double-digit growth.
Further, the popular opinion is that the hardening will continue for the next two to three years until carriers figure out a way to better combat the volatility in their losses, or rates harden enough to beckon capital back to the market.
For rate, carriers are pursuing 8%-12% increases for non-cat accounts in admitted markets, sources said, which compares to roughly 6%-8% rate increases last year.
However, the regulatory limitations put on rates in the admitted market is putting the squeeze on carriers, with reinsurance costs soaring.
In search for freedom of rate and form, carriers have been migrating to the non-admitted market. Here, sources have pointed to a wide range of rate increases in the E&S space this year starting from 20%, up to “easily above 150%” for wildfire, wind-prone areas.
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