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RT Binding

2022 Commercial Binding Update

Insurance carriers are continuing to push rate increases as they face increased challenges. Following multiple years of above average loss experience driven by severe storms, intense wildfires, and increased litigation, insurer losses remain at high levels. In addition, non-weather water damage claims account for approximately 20% of all property insurance losses for both personal and commercial lines, surpassing other types of claims in both frequency and severity. These conditions, coupled with global events such as the ongoing pandemic, are major attributing factors to the current tightened / hard market conditions for property and casualty insurance.

Looking behind the scenes at the reinsurance market, rate increases for insurers on their January 1 and more recent 2022 treaty renewals have increased at more meaningful levels compared to very moderate increases delivered in 2020 and 2021. Reinsurers are reevaluating and increasing pricing due to continued negative loss experience and escalation / reopening of already settled catastrophe losses over the past 4 to 5 years.

Specific to the property sector, building cost increases reported by insureds on new construction and renovation projects continues to be a key area of emphasis.  Insurance carriers are more closely evaluating and challenging valuations being submitted. As a result, insurers are establishing minimum cost-per-square-foot thresholds, and, in some cases, imposing restrictive policy language to ensure adequate values are reported. Insurer scrutiny and acceptance of reported values is further impacted by high inflation on raw materials, wages, and complications created by supply chain issues.

The casualty insurance market has moderated somewhat—the volatility of past market cycles has largely stabilized—but still the industry still remains negatively impacted by steadily rising claim severity, nuclear verdicts, social inflation, and uncertainty surrounding inflation. Umbrella and excess liability lines continue to receive, on average, the higher percentage increases.

To meet these challenges and support our retail customers, RT Binding can assist with proper valuation, review of exposure, and review of insureds’ unique claim histories. We represent a plethora of insurance carriers and can use our relationships and knowledge to find the best placement of individual risks. We work closely with our retail customers, navigating difficult market conditions to achieve the ultimate goal: obtaining the most cost effective and optimal insurance program for your clients!

National Hurricane Center (
Welcome to the Nation's Logistical Support Center | National Interagency Fire Center (
Insights (
Predicting Non-weather Water Claims: WaterRisk™ by Location, Inc. (