Clear communication, tailored coverage, and proactive modeling are proving vital in today’s evolving commercial property insurance landscape. That’s the approach Thurston Davis Jr. (pictured), vice president of property at RT Specialty, says is helping brokers keep pace with a market defined by shifting appetites and mounting catastrophe exposures.
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“What works best for myself and my team is just clear-cut communication and being able to tailor coverage to address stress points,” Davis said.
Working in the excess and surplus (E&S) space allows greater flexibility in this regard. “What stands out from the admitted carriers is just freedom of rate and form,” he said. “We’re always working closely with the agent and insured to tailor those coverages to insured needs.”
Davis believes capacity concerns are no longer as pressing as they were 12 to 18 months ago. In fact, he said, many carriers are increasing deployment in catastrophe-prone regions – not retreating.
“You’re seeing carriers offer additional capacity, especially in CAT regions,” he said. “They have high growth goals, better risk tolerance, and have been profitable in property over the last two years.”
But that doesn’t mean brokers can take their foot off the gas. “Just because capacity is available doesn’t mean you can be passive about how it’s deployed,” Davis said.
Davis’ team places a strong emphasis on data-driven modeling, especially for complex, multi-state risks. By analyzing detailed Statements of Values (SOV), they’re able to pinpoint where coverage is needed - and where it can be scaled back.
“You may have a billion-dollar risk, but if your earthquake exposure is limited to $15 million, then let’s not cover the full billion-dollar schedule for earthquake,” he said.
This targeted approach enables more efficient premium allocation. “That’s how we’re keeping premiums low while still gaining better terms,” Davis said.
Transparency is also critical. His team shares regular market updates with agents throughout the placement process, particularly for high-loss areas.
“We provide marketplace updates so agents can keep insureds informed,” he said. “That way, when we deliver a proposal, they’re not caught off guard by the pricing or coverage limits.”
Despite improved capacity, Davis stressed the E&S market remains highly reactive. “You could have a storm tomorrow, and the market could look completely different,” he said.
Two key factors will determine whether the current momentum holds: the upcoming wind season and the performance of the casualty market.
“A lot of investment has shifted from casualty to property, because property’s been more profitable,” Davis said. But if that balance changes – whether through improving casualty returns or a major CAT event – capacity could tighten again.
In a market this fluid, staying ahead means understanding carrier sentiment, maintaining modeling discipline, and preparing clients well in advance of renewal. “That opens a dialogue for no surprises,” Davis said.
