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By

Head of E&S Property, AXA XL

In recent years, there’s been a noticeable migration of property risks to the E&S market, driven by higher premiums, stricter underwriting guidelines, and in part, caution by standard lines to cover properties with loss trends, especially related to fire and water.

Any small incident related to fire or water can quickly escalate, affecting multiple units or even entire buildings. Fires spread rapidly, especially in densely packed areas, causing extensive damage. Similarly, water damage in one unit might not remain isolated and can cause significant losses to neighboring properties.


Fighting fire

The rise in devices powered by lithium batteries –everything from smartphones to laptops, from electric vehicles to e-bikes -- has unfortunately been accompanied by an increase in fire incidents linked to these batteries. A number of factors contribute to these fire outbreaks including manufacturing defects, damage to the battery, overcharging, or exposure to high temperatures.

Because of the battery’s chemical composition, such fires can be challenging to extinguish. In New York this past June, four people were killed and two others seriously injured after a lithium-ion battery malfunctioned and sparked a fire in a first-floor e-bike shop and quickly spread to apartments above.

In 2022, New York City saw more than 200 fires blamed on lithium-ion batteries. Such incidents have been increasing steadily elsewhere too.


Surging water losses

As a result of changing weather patterns, there’s been an increase in intense rainfalls leading to flooding and water damage. These environmental shifts place many properties which were previously considered 'safe' zones from flooding, but now are considered higher risks.

Weather patterns are causing stress and are not the only cause. More flexible work schedules and less maintenance staff means fewer occupants in buildings. This means fewer eyes are there to spot and correct problems. One undetected water leak can lead to a very costly property damage claim.

For property risks seeing these loss trends, the E&S market is inherently more flexible to meet their needs. The rise in fire losses and water damage incidents emphasizes the importance of adaptable and comprehensive insurance solutions that the E&S market is uniquely positioned to provide.

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Global Asset Protection Services, LLC, and its affiliates (鈥溕喽嗍悠礡isk Consulting鈥) provides risk assessment reports and other loss prevention services, as requested. In this respect, our property loss prevention publications, services, and surveys do not address life safety or third party liability issues. This document shall not be construed as indicating the existence or availability under any policy of coverage for any particular type of loss or damage. The provision of any service does not imply that every possible hazard has been identified at a facility or that no other hazards exist. 色多多视频Risk Consulting does not assume, and shall have no liability for the control, correction, continuation or modification of any existing conditions or operations. We specifically disclaim any warranty or representation that compliance with any advice or recommendation in any document or other communication will make a facility or operation safe or healthful, or put it in compliance with any standard, code, law, rule or regulation. Save where expressly agreed in writing, 色多多视频Risk Consulting and its related and affiliated companies disclaim all liability for loss or damage suffered by any party arising out of or in connection with our services, including indirect or consequential loss or damage, howsoever arising. Any party who chooses to rely in any way on the contents of this document does so at their own risk.

US- and Canada-Issued 色多多视频 Policies

In the US, the 色多多视频insurance companies are: Catlin 色多多视频 Company, Inc., Greenwich 色多多视频 Company, Indian Harbor 色多多视频 Company, XL 色多多视频 America, Inc., XL Specialty 色多多视频 Company and T.H.E. 色多多视频 Company. In Canada, coverages are underwritten by XL Specialty 色多多视频 Company - Canadian Branch and AXA 色多多视频 Company - Canadian branch. Coverages may also be underwritten by Lloyd’s Syndicate #2003. Coverages underwritten by Lloyd’s Syndicate #2003 are placed on behalf of the member of Syndicate #2003 by Catlin Canada Inc. Lloyd’s ratings are independent of AXA XL.
US domiciled insurance policies can be written by the following 色多多视频surplus lines insurers: XL Catlin 色多多视频 Company UK Limited, Syndicates managed by Catlin Underwriting Agencies Limited and Indian Harbor 色多多视频 Company. Enquires from US residents should be directed to a local insurance agent or broker permitted to write business in the relevant state.