The real estate marketplace for E&O insurance is "cyclical", says Zach Vollmer, Real Estate Program Manager at Victor. As the real estate market grows, the frequency of E&O damage is generally predictable, with increases in claims strongly reflecting the increase in overall transactions. However, when the housing market is volatile and home sales and valuations decline, there is often a sharp surge in claims caused by dissatisfied people in the home buying process.

Next read: Victor starts a revised client risk program

Last year, the real estate market for E&O insurance was "extremely turbulent" despite positive trends on the US real estate market. Vollmer commented: "The number of options available to brokers and real estate professionals to purchase high-quality E&O coverage has decreased significantly. We have seen several markets exit the market overall, MGAs being forced to replace capacity providers, a general decrease in risk appetite, and we have seen some markets accept significant rate increases.

"That is due to various factors. Some of that was loss-driven, and in my view segments of the real estate E&O space had been undervalued for some time. There are also capacity issues, not necessarily related to real estate E&O, which have caused markets to redeploy their capacity. For example, problems in the property and casualty insurance (P&C) market from recent property damage and other losses within certain financial lines have caused the markets to move capacity away from small commercial spaces and into other segments of their business. "

Continue reading: Victor's A&E Professional Liability Program is undergoing an exciting overhaul

While the real estate E&O market continues to move, Victor is the essence of consistency and stability. Victor's real estate E&O insurance program has existed with the same carrier partner for over 38 years. Vollmer attributes the program's longevity to appropriate risk pricing and selection, skilled employees (the average tenure of an underwriter in the Victor real estate program is 22 years) and a value proposition that focuses on risk management and loss control through education. and partnership. In addition, Victor and the National Association of REALTORS® have joined forces as part of the REALTOR Benefits® program to offer REALTOR® members a first-class insurance program for errors and omissions.

"We also do everything we can to make it easier for insurance brokers to work with us," Vollmer continues. Victor's Real Estate E&O program is available for quotes, ties, and issuance online through Victor's V2 platform, a business portal that gives brokers and brokers the benefit of instant quotes and application management through simplified and streamlined technology-driven processes.

"It's something you don't normally see in professional liability lines," said Vollmer, adding, "That really sets Victor apart. Not only can we offer a program that is the oldest in space, what I would call the market standard, but we are also the easiest to use because of the technology we make available to the agents. "

It is important to make life easier for sales agents and brokers, especially when the market is in a "stormy" state. Vollmer noted, "Insurance brokers should look at the longevity of a program and how long it has worked with an insurance carrier because that is an indication of the strength of the program. While real estate E&O insurance programs are still in place, when agents or brokers have to re-market policies because the freight forwarder has gone out of business, they usually run themselves at greater E&O risk. Agents and brokers should ensure that they select a competent provider who, like Victor, will be present in the room for a longer period of time. "

To learn more about the Victor Real Estate E&O insurance program, visit: https://www.victorinsuranceus.com/realestate

source https://seapointrealtors.com/2021/09/01/victors-strong-and-stable-real-estate-eo-program-amid-tumultuous-market/

 This free site is ad-supported. Learn more
​