Paul Lucas 00:00:06
Hello everyone. Welcome to Insurance Business, TV and a special edition looking at the E&S property space in association with Axis. Now it’s fair to say the property market is challenging right now, particularly on the back of what appears to be increasingly unpredictable weather patterns. We’ve already seen hurricanes Beryl and Debbie this year, of course, but amid convective storms and other risk drivers, there are opportunities for specialists in the space who know how to handle the complexities of the market. So to examine these conditions, we’re delighted to welcome Michael Carr, Head of E&S property at Axis. Michael, welcome to Insurance Business. TV,
Michael Carr 00:00:45
Thank you. Paul, happy to be here.
Paul Lucas 00:00:47
So Michael, I touched on it at the top, but describe the current market conditions within the ens property insurance space right now.
Michael Carr 00:00:55
Currently, I would describe the ens property market with two words that you usually don’t hear with E&S profit market stability and equilibrium. I compare that to 2023 when there was a tremendous amount of capacity that was pulled out of the marketplace, and it was challenging market to operate in for our customers, brokers and insurance. However, we still feel like there’s a tremendous light opportunity as the market navigates and have stabilized and then more equilibrium, there are some nuance in the marketplace as respects to the primary and buffer area is under more attack from a competitive pressures than the high excess layers, where we feel Like we’re underway then, and there’s an opportunity there. The opportunities are still in the marketplace. There’s an influx of submission activity that would see and we continue to feel like we have a good book and a portfolio that we continue to build on.
Paul Lucas 00:01:54
Well, that’s amusing to the ears of May to hear that the market is stabilizing a little bit, but tell us a little bit about what’s driving those trends with this insurance market. Oh, talk about perhaps the external factors that are driving underwriting decisions, and what you’re seeing in terms of claims activity as well.
Paul Lucas 00:02:09
Tell us a little bit more about that, if you don’t mind. Michael, what’s new for axis in the E&S property space, and where do you see those opportunities?
Michael Carr 00:02:09
The frequency and severity of caddy vets continue to persist. In the first half of 2024 there was $60 billion of caddy vets in the marketplace. Most of those county events were convective, store and wildfire. So the activity from a county that continues is a challenging market. That’s the reason you have to be disciplined in how you operate to make sure you have appropriate limits, management, exposure management, in order to operate in this marketplace. We don’t expect that to change. It’s been going off the last 10 years, and we expect to persist. But there’s still opportunities in the market.
Michael Carr 00:02:57
As I talked about earlier, as far as the primary and buffalo, that is the area we have built our expertise around over the years. However, we feel like there’s any efficiency in the higher excess market, the capacity has not come back into that space as readily as in the primary and buffaloes. We’ve hired Ben Ward, who’s an expert as respects to the high access area and with his team, and we’re underweight in that area, and we feel like there’s an opportunity for a new responsible discipline market to have looked to provide limits in that area.
Paul Lucas 00:03:32
And of course, Michael conference season is upon us. So what are your messages for wholesale brokers, and what do you think is top of mind for brokers operating in what it has been a very complex E&S property space.
Michael Carr 00:03:47
Our message for access is that we are still an engaged market in E&S property market space. We feel like there’s tremendous amount of opportunity. The key element for us is being able to handle the influx of businesses coming in. We want to figure out a way to solve problems for our customers, provide options, alternative solutions, to be a market that is able to handle the influx that’s taking place, and at the same time, solve problems. We’re excited about the opportunities in the marketplace, and we look forward to solving broker’s problems.
Paul Lucas 00:04:20
Well, of course, I know that you’re going to have a presence at the WSIA annual marketplace, so I’m sure many of our broker viewers will be looking forward to seeing you there. And of course, we look forward to seeing you next time right here on Insurance Business TV.