10 Considerations/conditions • The excess and surplus lines are being quoted at a minimum • Insurers are limiting their exposure marketplace has hardened at a much of 10% of the required capacity to wild昀椀re/brush昀椀re by reducing more rapid pace than the admitted limit (i.e., “rate on line”, or ROL) in the amount of capacity they are marketplace. This is the result of addition to pressure to increase the deploying. This capacity reduction poor underwriting results over the percentage deductible to 10% in is in turn driving pricing for clients past two years as well as the heavily some speci昀椀c geographies. Inland with risk for this peril. catastrophe-exposed and distressed geographies that have historically • Insurers are reevaluating 昀氀ood risks that are mostly written by this been immune to percentage named exposures and many have adjusted segment of the market. wind deductibles are now seeing their underwriting guidelines to • Loss a昀昀ected accounts will be insurers attempting to impose these address the increasing risks. extremely challenged, especially if deductibles to lessen their exposure • Capacity reductions are being seen they are structured as a shared and as these storms track inland after for high hazard earthquakes, layered program. making landfall. mainly via managing general agents • Per occurrence water damage • Bu昀昀er and excess layers will be deductibles continue to gain (MGAs) as insurers look to assume under more pricing scrutiny as scrutiny, especially for habitational greater control and limit third-party insurers will seek higher minimum risks. Generally, water damage underwriting authority. premiums. Depending on the deductibles under $100,000 are • Expect more underwriting scrutiny individual account, insurers may on vacant properties with markets also press for higher attachment di昀케cult to procure. asking to place them separately at requirements. This can lead to • Placements with signi昀椀cant much higher rates. gaps in incumbent capacity and/or exposure to secondary natural reduced capacity—all of which have catastrophe perils (i.e., severe the potential to drive additional cost. convective storm, wild昀椀re, winter • Named wind coverage capacity freeze, and water damage) may see sizable premium increases. They is becoming very di昀케cult to are likely to be subject to increased procure for exposures in Florida deductibles similar to what exist for and coastal Louisiana. Premiums earthquake and named storm perils.