Hot Residential Markets and the Impact on Risk Robert Gore Executive Vice President Willis Insurance...
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Hot Residential Markets and the Impact on Risk Robert Gore Executive Vice President Willis Insurance Services of California, Inc. Elizabeth A. Lowe Senor Risk Management Consultant Robert M. Currey & Associates Erik Davis Los Angeles President and Managing Director R-T Specialty, LLC
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Transcript of Hot Residential Markets and the Impact on Risk Robert Gore Executive Vice President Willis Insurance...
Hot Residential Markets and the Impact on Risk
Robert GoreExecutive Vice President
Willis Insurance Services of California, Inc.
Elizabeth A. Lowe Senor Risk Management
Consultant Robert M. Currey & Associates
Erik DavisLos Angeles President and
Managing DirectorR-T Specialty, LLC
Geographic vs. Sector Geographic areas of largest growth / anticipated growth:
Arizona, Texas, California, Florida, Carolinas, New York Sectors of growth/anticipated growth• Apartments –everyone is building; have we reached
saturation?• Single Family Detached – a lot of people still want a home in
the suburbs• Condominiums – the new generation embraces urban living
and is less tied to the “picket fence” dream
Insurance Products• Wrap-Up vs. Traditional
• Project Specific vs. Rolling
• OCIP vs. CCIP
• FLEX and other unique product offerings
Insurance Issues in Today’s Market
• Builders buying land at a fast pace again – creates problems for the regional builders that can’t sit on land; but will we create another bubble?• Apartments being re-classified as residential in many standard
markets• Staffing concerns of builders and vendors in the residential sector• Fallout from the recent REO craze (successor liability, CD, etc.)• Proper accrual for potential losses in future years• Horizontal exhaustion issue now a national issue• Construction Defect in some states not being upheld by the
courts as an “occurrence”• Texas changes
Market Trends for the Near and Mid-Term Future
• Market starting to harden in the residential sector over past 12 months • Capacity has been shrinking in residential sector over past 12
months, but a few markets are starting to talk about getting in / or coming back in• Apartment construction at an all-time high over past year; expect
it to continue in the near term• Due to apartment boom, should we anticipate another condo
conversion theme starting in next few years?• Texas, Carolinas, Florida anticipated to have large future growth
as well as an increasing number of urban in-fill projects
Elizabeth A. Lowe Senor Risk Management Consultant Robert M. Currey & Associates, Inc.
137 Newbury Street, 4th Floor Boston, MA 02116
(617) [email protected]
Erik DavisLos Angeles President and Managing Director
R-T Specialty Insurance Services, LLC3400 W. Olive, Suite 350
Burbank, CA 91505(818) 937-4265
Robert GoreExecutive Vice President
Willis Insurance Services of California, Inc. 18101 Von Karman Avenue, Suite 600
Irvine, CA 92612(949) 885-1226
