CRC Group’s Q2’25 Property REDY Index highlights softening market and expanding capacity

CRC Group, a wholesale specialty insurance distributor in North America, has published the Q2 2025 update of its Property REDY Index.

The Index offers a monthly analysis of renewal pricing trends using data collected across CRC’s property book. Built from one of the industry’s larger wholesale data sets, it is intended to give brokers and clients a broad view of pricing movements in the market.

According to the Q2 results, the property insurance market continued to ease over the past three months. Average renewal rates declined by about 5% each month, despite continued pressure from major loss events.

Estimated insured property losses worldwide for the first half of 2025 range between $70 billion and $90 billion. Key contributors include California wildfires causing $20–$30 billion in damages and another $20 billion in losses from widespread convective storms.

Recent flooding in Texas—mostly affecting rural areas with limited flood insurance coverage—has added more uncertainty to the outlook. Flood impacts in other parts of the U.S. are still being assessed.

At the same time, additional capital has entered the market through catastrophe bonds and insurance-linked securities, expanding available capacity. Reinsurers secured 10–15% rate reductions during 2025 treaty renewals, which has encouraged carriers to take a more competitive stance on pricing and deployment of capacity.

Rate reductions are widespread, especially for shared and layered placements, where clients are typically seeing decreases between 5% and 15%. In some cases, reductions are reaching or exceeding 40%, depending on programme structure and loss history. Single-carrier placements are also seeing rate decreases, though generally smaller, staying in the single to low double-digit range.

Terms and conditions have also continued to shift in favour of insureds. Lower deductibles for both catastrophe and all other perils are becoming more common, along with increased sublimits and greater availability of blanket coverage.

Carriers—both established and new—are participating more actively across both primary and excess layers, creating opportunities to improve coverage while lowering total insurance costs.

The REDY Index focuses on accounts that renewed in the same month as the prior year with unchanged limits. To reduce distortion, the highest and lowest 1% of accounts by year-over-year change and rate online (premium-to-limit ratio) are excluded. While the Index offers a general perspective on market conditions, actual outcomes will vary by account.

CRC Group uses the REDY Index to inform its internal strategy and to support broker decision-making, but notes that it is intended as a guide rather than a predictive tool.

This website states: The content on this site is sourced from the internet. If there is any infringement, please contact us and we will handle it promptly.