During a recent MultifamilyBiz.com+ PowerHour webcast, multifamily insurance masterminds and insurtech gurus discussed the turbulent financial landscape in the multifamily housing sector. The panelists shared strategies to navigate the ever-dynamic market and discussed what’s on the horizon for developers, property managers and investors in this sector.
Three big key takeaways include:
Hope is on the horizon. 2023 was the hardest year in the property insurance market. While carriers are still pushing hard terms for renewals, rates are much more favorable for properties without loss history—like newer developments. But as our very own multifamily insurance expert Collin Chlebak said, “Unlike Walmart, prices aren’t getting ‘rolled back,’ but we are seeing more stable conditions which is creating momentum and driving activity.”
Economies of scale are back (sort of). When the market hardened, it was common practice to break up master programs, removing loss-affected areas to secure better coverage and rates for the remaining clean assets. Now that we’re seeing rates plateau, carriers are once again rewarding economies of scale. But as the experts noted, it’s “economies of CLEAN scale;” so, they recommend working with an asset or property manager to create economies of clean scale while also collaborating with your broker on program options that best match your portfolio and risk appetite.
It's not your grandpa’s insurance. Technology is fueling the next big industry evolution. From using AI to detect claims fraud and applying robotic processing automation (RPA) to expedite submissions to the introduction of new tech-powered products like parametric insurance, technology is making insurance more intelligent while helping carriers and insureds better predict losses and manage costs.
For more multifamily insights and predictions, listen to the full webcast on MultifamilyBiz.com.