Latest Reports: Amwins Examines the Intersection of Hospitality and Real Estate Industries
In the dynamic world of insurance, Amwins has released its 2025 State of the Market Report, shedding light on key trends and challenges facing the Hospitality and Real Estate sectors.
The report underscores the increasing complexity of claims, particularly in the areas of construction defects and social inflation (increased litigation costs and claim payouts). This complexity is further compounded by the widespread use of uninsured or inadequately insured subcontractors in construction projects related to these sectors.
Contractual and insurance coverage complexities also pose significant challenges. Smaller contractors often grapple with contract indemnification issues and verifying subcontractor insurance. The report underscores the importance of strong contracts and well-structured insurance policies in mitigating risks and supporting recovery from claims.
The report emphasizes the need for specialized insurance products and brokering expertise. As the insurance market evolves, brokers and insurers must adapt by providing tailored solutions for the hospitality and real estate sectors, addressing risks such as fire, environmental damage, and operational liabilities. Leveraging insurance expertise is essential for these sectors to sustain growth and shield investments.
Another notable trend is market consolidation and the growth of merger & acquisition (M&A) insurance products. While not specific to hospitality and real estate, these trends impact these sectors by influencing deal risk management and investment security.
In the cannabis insurance market, Amwins has issued a report focusing on the US, offering insights into this specific sector. Coverage restrictions around firearms, sexual misconduct, and human trafficking are becoming the norm, particularly for high-risk venues. Hired Non-Owned Auto coverage now commands premiums exceeding $25,000 in some cases, with tighter underwriting.
In the cyber insurance sector, Amwins has a new report available. The report provides a detailed analysis of current market trends, including pricing, capacity, and other factors. However, it does not mention any tightening capacity, evolving underwriting practices, or growing exclusions related to assault & battery, firearms, sexual misconduct, or human trafficking.
The report on cyber insurance by Amwins does not mention any non-renewals, increased complexity in placing coverage, or widespread non-renewals for liquor-driven venues in the hospitality sector. Liquor-driven venues in the hospitality sector, however, face widespread non-renewals and must often pursue costly monoline placements in the E&S market. Real estate schedules require SIRs of $50,000 to $100,000+ to stay lender-compliant.
Carriers are increasingly unwilling to offer defense outside the limit for assault & battery, driving up costs and creating friction with excess markets. Brokers and insureds face increased complexity in placing coverage for liquor-driven hospitality risks and large real estate schedules.
In the US, cannabis use, growth, and retailing on a commercial scale is legal in several states. The report on the cannabis insurance market by Amwins offers insights into this specific sector.
Lastly, it's worth noting that Amwins has also published its 2024 State of the Market Report. The report provides up-to-date market intelligence covering rate fluctuations, capacity, and evolving coverage trends across diverse sectors.
In conclusion, the 2025 market environment for hospitality and real estate is characterized by heightened claims risks driven by construction and social inflation factors, contract and insurance coverage challenges, and an evolving insurance broking landscape aiming to meet these specialized needs.
- In the complex world of insurance, the importance of specialized insurance products and brokering expertise, such as specialty insurance for real-estate and hospitality sectors, is emphasized to address specific risks like fire, environmental damage, and operational liabilities, supporting growth and shielding investments.
- The 2025 market environment for various sectors, including real-estate and hospitality, faces challenges in financing and investing, as carriers show reluctance to offer defense outside the limit for certain liabilities, such as assault & battery, driving up costs and creating friction with excess markets.
- Regarding the cannabis insurance market, underwriting practices have seen an evolution, leading to coverage restrictions around high-risk venues, such as those related to firearms, sexual misconduct, and human trafficking, and increased premiums for Hired Non-Owned Auto coverage.
