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Renewing Your Property & Casualty Insurance will be Tough but not Impossible

Traci Barlage April 6, 2023
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If you’re insuring any type of property this year, it’s going to be tough, especially if you’re in an area that experiences potentially catastrophic events such as multi-cell windstorms and tornadoes.

Trends have emerged among those who have already renewed their property and casualty insurance this year and they show the property market deteriorating rapidly.

Those with a clean renewal – people who have done everything they can to reduce risk and are not in areas prone to catastrophic events – will experience an average 15 percent rate increase.

If you are a clean risk but in an area that experiences natural disasters such as hurricanes, floods and wildfires, expect your insurance premiums to rise 25-40 percent on average. Traditionally, catastrophic events have largely been confined to California and Florida but, as the climate changes, these events are spreading to other areas. For example, hurricanes are moving farther up the East Coast and tornado activity is increasing significantly.

The outlook is even more bleak in Florida, where the sky is the limit on premium increases. Insurance carriers only have a limited capacity to insure catastrophic areas, and that capacity is shrinking. What is available after treaty negotiations gets filled up early in the year, so those renewing in the second half of this year will have a hard time finding coverage. They might have to obtain coverage from multiple carriers to reach the level of coverage they need.

What’s happening? Property values are feeling the pinch of economic factors such as inflation and the shortage of skilled workers. In addition, for years carriers would replace a building at current costs, even when the client was paying premiums on an outdated property value. Not anymore.

As insurers crack down, it’s a good time to reevaluate your insurance portfolio. However, expect an increase in asset valuation of at least 10 percent, based on the updated value of your property schedule.

Renewal Strategy

There are several steps you can take to get the necessary coverage for your property at the best rates.

  • Start early. The earlier you begin the process, the more options you will have.
  • Tell your story. Work with your broker to tell the story you want the markets to hear. Have your properties been appraised? Can you discuss cost per square foot and methodology of the calculation?  Underwriters want to know the cost trend is being applied to the correct starting figure. Pay attention to the details!
  • Embrace the priority recommendations. Address any unresolved, aged life safety and human element recommendations that would affect pricing pressures or non-renewal notices. The days are over when people could ignore recommendations to reduce risk and still get coverage. Show the underwriters how you’re doing your part.

A good broker will be honest about the difficulties you face and the expected increases in your renewal. They will also explain challenges within the market that might impact your renewal.

The experienced Property & Casualty team at Oswald will uncover your story, sell your account to the market, and explore all creative alternatives to gain the best coverage and rates for you.


For more information, please contact me directly or learn more on our Property & Casualty page.

Traci BarlageTraci Barlage
VP, Global Practice Leader
704-819-2971
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Note: This communication is for informational purposes only. Although every reasonable effort is made to present current and accurate information, Oswald makes no guarantees of any kind and cannot be held liable for any outdated or incorrect information. View our communications policy.