Hard-to-Place Risks in Property and Casualty Insurance: A Specialist's Perspective

The current property and casualty insurance market presents unprecedented challenges for retail agents. Traditional carriers are increasingly selective, leading to more non-renewal notices and a restricted appetite for complex risks. This environment requires a sophisticated approach to risk placement and management.

Common Difficult-to-Place Scenarios

• Properties with adverse loss history or unique construction features
• High-hazard commercial operations with specialized liability exposures
• Commercial auto fleets with severe claims experience
• Businesses operating in catastrophe-prone regions
• Operations with emerging or poorly understood risks

Key Considerations for Complex Risks:

Property Risk Evaluation: When evaluating complex property risks, focus on often-overlooked elements such as building system interdependencies, site-specific natural hazard exposure, and business interruption vulnerabilities.

Liability Risk Analysis: Modern liability exposures require in-depth analysis of emerging technology impacts, cross-border exposures, and reputational risk factors.

Alternative Risk Transfer Solutions: For particularly challenging risks, consider parametric insurance structures, captive insurance arrangements, and risk retention groups.

Excess and Surplus Lines Markets: Navigate surplus lines markets effectively by identifying specialty carriers, understanding unique form requirements, and optimizing coverage structure through creative program design.

Risk Management Integration: Successful risk placement involves robust risk management practices, including third-party risk assessments, loss control implementation, and structured claims management protocols.

Building Successful Carrier Relationships: Develop effective market presentation strategies with detailed narratives, sophisticated loss analysis, and transparent risk improvement timelines. Maintain ongoing program management with regular stewardship meetings, claims advocacy, and market intelligence updates.

For retail agents facing challenging risks, remember that successful placement often requires:

• Thorough risk analysis and documentation
• Access to specialized markets and alternative risk transfer solutions
• Creative program structure and coverage design
• Strong carrier relationships and ongoing program management

By leveraging these strategies and working with experienced wholesale partners, retail agents can successfully place even the most challenging property and casualty risks while delivering optimal coverage solutions for their clients.

Coastal Brokers aims to help your clients secure the coverage they need to feel confident, especially in today’s uncertain environment. For more information on submission and coverage, call (925) 498-6004 or follow us for updates and insights.