Despite a forecasted active hurricane season, Applied Underwriters and its Centauri Insurance subsidiaries (Centauri Specialty Insurance Co. and Centauri National Insurance Co.) have reaffirmed their dedication to underwriting in Gulf Coast markets.
According to Applied Underwriters, the market is under threat from recent carrier insolvencies, voluntary and forced moratoria imposed by some strained carriers, and insufficient or late renewals by numerous carriers. Since they do not write many lines of business, monoline insurers are most at risk.
On the other hand, Centauri Specialty Insurance Co. and Centauri National Insurance Co. are successfully writing new business after 2021. Demotech, a national rating agency, confirmed the companies’ A grade before they entered 2022, and their reinsurance treaties were finished in time to prevent capacity issues.
Brokers and consumers are frantically looking for coverage, frequently under the pressure of tight deadlines for renewals and new policies, Menzies said. “We are standing solid in the market for our many brokers and their insureds with no compromises in our financial integrity or product quality, Menzies said. “The demand produced by the insolvencies of other insurers and their lack of proper reinsurance financial backing is significant, and our staff is successfully meeting it with a firm commitment to delivery that will assist support the market in the various Gulf states and serve our brokers and clients.
Since acquiring Centauri, we have improved its infrastructure by working with some of the most advanced national operations platforms in the world, Applied’s. In each of our reinsurance operations around the world, Applied has taken the strategy of building operational, informational, infrastructural, and financial foundations that sustain our firms under all conditions. At Centauri, we have already set up a similar structure.
The company was under further strain, according to Jamie Sahara, president of Applied, as possible issues in the market among other insurers emerged due to a general shortage of catastrophic reinsurance as well as insolvencies in 2021 and 2022.
“It makes sense. We only have a certain amount of capacity with such a high demand,” Sahara remarked. “Our renewal clients are our first focus. Therefore, we kindly request that our agents accept the fact that we will need to control the flow of new business and urge them to submit their new business applications as soon as feasible.