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In a Difficult Property Market, Niche Products Can be Critical to Success

The last few years have been very difficult for the property market overall. Unprecedented natural disasters coupled with inflation and supply chain disruptions have made the cost of property claims rise dramatically. Look no further than Hurricane Ian, a historic CAT event that may well prove to be the costliest CAT event in Florida’s history.

For property brokers, declining capacity, rising deductibles, and tightening terms and conditions have led to a lot of difficult conversations with their clients. These challenges are not limited to traditional CAT exposed regions, as exposure to “secondary perils” such as convective storms, floods and wildfires caused an estimated $81 billion of insured property losses in 2021.

To fill the coverage gap, property brokers are always on the lookout for large blocks of “new capacity” that can instantly help fill out a program. It is unlikely that a one-size-fits-all approach will fill the holes that have arisen in this changing market. Fortunately, it is possible to use existing niche capacity to help solve some of the current challenges.

The Ethos Specialty Property team has tailored products to help address to the current market dynamics. Insurers are raising deductibles for AOP, water damage, construction projects and named windstorm exposures. The Ethos Specialty suite of deductible buy programs can close the gap between these higher deductibles and the insureds or lenders risk appetite. Manufacturing occupancies can also be difficult to place, particularly businesses with high hazard fire exposures. Ethos Specialty MPW (manufacturing, processing, and warehousing) Program can offer primary or excess capacity to help fill out the placements on these accounts.

For more information about these products or other Ethos Specialty programs, please contact us at

Ethos Specialty disclaimer:

The information contained herein is offered as insurance Industry guidance and provided as an overview of current market risks and available coverages and is intended for discussion purposes only.  Statements of coverage availability and scope are general in nature, subject to change and underwriting of any individual risk, and provide no guaranty or warranty of coverage, express or implied.  The precise coverage afforded by any insurer is subject to the actual terms and conditions of the policies as issued.  Insurance brokerage and related services are provided by Ethos Specialty Insurance Services LLC (California License No. 0M29989).  The publication and delivery of the information contained herein is not intended as a solicitation for the purchase of insurance on any US risk.