Carriers seek increased profitability as the Florida market shows early signs of hardening
In today’s competitive insurance market, underwriters face increased pressure to grow profitability by tightening existing guidelines and adapting their portfolios to fit shifting industry priorities. Critical property attributes, such as insight into roof, plumbing, electrical, or mechanical activity, allow insurers the ability to better select risks and streamline underwriting processes.
A recent deep dive by BuildFax revealed the impact of major systems activity:
- One major carrier found that the loss ratio on structures that underwent three to four major systems updates was 55% lower compared to properties that experienced no updates.
- As of August 2019, 31.08% of properties in Florida older than 20 years have undergone at least five major systems and/or roof updates.
- Almost 21% of Florida major systems upgrades pertain to roof replacements.
For a comprehensive analysis of how major systems activity can improve the risk on your book of business, download the white paper.