President and CEO J. Powell Brown, discussing the insurance market in general, says rates overall are on the upswing throughout the U.S., increasing in some cases from flat to mid-single digits depending upon the perception of risk among carriers. In a few markets carriers are seeking rate hikes as high as 10 percent.

Focusing on the New Jersey, New York and Long Island area, Powell says carriers are making the most underwriting changes on commercial property accounts with attempts at increases as high as 8 percent. He says capacity on wind risk is tightening throughout the region, and coastal areas within five to eight miles of the coast have seen their wind deductibles go from flat rates to 2 percent increases.

Flood deductibles have doubled and some standard market carriers are non-renewing, pushing property risks into the Excess and Surplus lines market, says Powell. E&S carriers are increasing prices by 10 percent or more on habitation, along with changes in terms and conditions. Some insurers are not insuring wood frame structures and are cutting flood limits or increasing prices substantially.

“It's a brave new world” for E&S carriers in the New York and New Jersey area, says Brown.