Why More Insurers Are Leaving High-Risk Markets—And What It Means for Your Clients

Insurers are pulling out of high-risk markets at an increasing rate, leaving real estate investors with rising premiums, non-renewals, and coverage gaps. If your clients own properties in catastrophe-prone areas, they may be struggling to secure affordable, reliable insurance. Brokers who understand this trend and act quickly can provide real solutions—before clients are left without options.

Why Are Insurers Exiting Certain Markets?

Several forces are driving insurers to scale back or withdraw from high-risk areas:

• Rising Catastrophe Losses: Wildfires, hurricanes, and flooding have resulted in record-breaking claims, forcing insurers to reevaluate their exposure.
• Reinsurance Pressures: Higher costs and stricter underwriting from reinsurers make it more expensive for insurers to operate in these markets.
• Regulatory Challenges: State-imposed rate caps prevent insurers from adjusting premiums to reflect true risk, making some markets financially unsustainable.
• Legal and Fraud Issues: In some states, excessive litigation and fraudulent claims drive up costs, pushing insurers to exit.

The Impact on Your Clients

For real estate investors, insurer withdrawals create significant financial and operational challenges:

• Limited Coverage Availability: Fewer insurers mean fewer choices, often leading to higher costs or restricted coverage.
• Sharp Premium Increases: Clients may face double-digit rate hikes as competition declines.
• Higher Deductibles and Policy Restrictions: Carriers that remain are implementing stricter terms, requiring property owners to take on more risk.
• More Non-Renewals: Many investors are receiving non-renewal notices, forcing them to scramble for alternatives.

How SES Helps Brokers Secure Coverage in High-Risk Markets

SES specializes in securing coverage for properties in catastrophe-prone areas. Our programs are designed to provide stability and long-term solutions for real estate investors who need reliable insurance.

We help brokers:

? Access Alternative Markets: SES works with top-rated carriers that understand and support high-risk property coverage.

? Navigate Non-Admitted Solutions: We guide brokers and their clients through surplus lines policies when traditional markets fall short.

? Customize Coverage Options: SES offers tailored insurance solutions to match specific property risks.

? Stay Ahead of Market Changes: Our team provides insights and strategies to help brokers proactively manage renewals and avoid last-minute disruptions.

Get the Coverage Your Clients Need—Contact SES Today

Don’t wait until a client receives a non-renewal notice or an unexpected rate increase. SES has solutions to keep real estate portfolios protected, even in today’s challenging market.

Contact us at [email protected] to explore coverage options and secure the best solutions for your clients.