11 April 2025 | Insight
From the desk of Ryan Hill, Head of Property, Price Forbes Bermuda
After a favorable close to 2024, the Property market continues to soften, with rate reductions hovering around the 10% mark. But let’s be clear: Q1 hasn’t set the tone for the full year. We’ve yet to see the bulk of CAT-exposed renewals come through, so the real litmus test lies ahead in Q2.
The January California Wildfire event, projected to cost the industry $30–$50bn, hasn’t reversed the overall trend just yet. Even with significant insured losses and broader economic impact, rate momentum continues downward. While some local corrections are happening, the broader environment remains highly competitive.
That said, the wildfire event has generated scrutiny around valuation adequacy. Once claims started settling, it became evident that underinsurance is still a systemic issue, especially in high-CAT zones. The fallout from this could catalyze pricing dislocation between reinsurance treaties and front-end insurance placements, particularly as Q2 CAT programs are re-evaluated.
Bermuda remains very much open for wildfire-exposed risks, business as usual for the island’s capabilities! Clients are flying in regularly to meet with markets, and we’re seeing strong engagement across the board. Programs continue to be oversubscribed and finalized early, giving insureds greater leverage in choosing their partners, moving from ‘price takers’ to ‘price pickers.’
Coverage terms, which held steady during the softening of 2024, are now starting to broaden. We’re seeing some early movement on deductibles as well, which bodes well for insureds in the upcoming quarters.
If you’d like to discuss these trends in more detail or talk through a placement challenge, the team is always here for a conversation, whether it’s in the boardroom or over a Dark & Stormy.
Our property insurance experts are always on hand to talk about ways we can join forces to take on the future.
