The Florida condominium marketplace has tightened substantially over the past four to eight weeks and may tighten further in the near future as a result of several developments happening simultaneously. These developments include but are not limited to the following.
In response to these notable changes and sudden shift in demand for replacement or supplemental Florida condominium capacity, many of the carriers that remain active and viable in the Florida condominium space have upwardly adjusted their pricing, deductible requirements and/or underwriting guidelines, while sometimes simultaneously limiting the line size they are comfortable dedicating to any single placement. This same phenomenon was initially discussed in Amwins’ Q1 2021 State of the Market report released on March 3.
While each upcoming Florida condo renewal result will stand on its own based on the individual characteristics of the account, the details of the expiring placement and the extent of the marketing effort performed by the retailer and wholesaler, rate increases in the 15%-25%+ range are now commonplace in situations where the expiring program structure remains consistent. Older condo construction accounts, those that are being non-renewed and those placed ground-up last year with no available ground-up solution this year are three examples of accounts which may see rate increases well in excess of 25%, with 50%-75%+ rate increases sometimes in play in such situations for a variety of reasons.
Even amidst significant constraints, opportunities still exist. Amwins Special Risk Underwriters (SRU) represents exclusive Florida condominium capacity available only through Amwins brokers, serving as a power tool in Amwins brokers’ toolkits and providing clients much needed property capacity in this quickly tightening condominium marketplace. The entire SRU underwriting team specializes in CAT-exposed property and products that are backed by top-rated London and domestic carriers. SRU and our full arsenal of Property carriers are well equipped to manage the changing tide of Florida condominium coverage.
Amwins brokers continue to be 100% committed to identifying the very best available combination of pricing, terms and conditions for each of your Florida condominium accounts, utilizing a single carrier, ground-up quota-share, layered, layered & shared, or wind/ex-wind approach to optimize each placement in these very recent and challenging market conditions. Amwins’ position as the largest wholesaler in the U.S. grants you and your insureds the broadest available market access and leverage in a time where those attributes couldn’t be more important.