Introduction

Landlord insurance has been regarded as a safe haven for insurers given stability from continued demand for rented property. Yet pressures from claims costs, high commission rates and fierce competition have threatened the market’s profitability. Further, current economic conditions and trends, such as internet shopping, have changed the shape of the property market upon which the line depends.

Features and benefits

• Strategize the shape of your book and targeted business, with a detailed view of current property market conditions broken down by segment
• Benchmark your performance against the health, growth and profitability of the whole landlord insurance market
• Build resilience to sources of high claims costs, prepare for emerging risks in the market and seek opportunities from these

Highlights

Premium and commission rates will come under increasing pressure as landlords face difficulties transferring costs, be it due to properties lying vacant or struggling tenants challenging service fees.

The residential landlord insurance market can expect growth in written business as an increasing share of households are rented, however it is expected to continue experiencing high claims costs.

The commercial landlord insurance market can expect little growth from new business as development pipelines for commercial property - retail, office and industrial - are sluggish while financing for activity is hesitant over low demand.

Your key questions answered

• Which property segments are growing and what mix of these are likely to be considered ‘good risk’ in the next few years?
• What key threats and issues should insurers prepare against as profit margins come under increasing pressure?
• What pressures are stakeholders along the distribution chain, from insurer to tenant, facing and how will this affect commission and premium rates?