Report Examines Trends in Hospitality and Real Estate Sector by Amwins
Amwins Releases 2025 Hospitality & Real Estate State of the Market Report
Amwins, a global distributor of specialty insurance products and services, has published its latest report offering insights into the current state of the market for the liquor-driven hospitality and real estate sectors. The report highlights market contraction, capacity tightening, and evolving underwriting practices as key trends in these industries.
Market Contraction and Capacity Tightening
The property and habitational insurance market is experiencing a tighter capacity environment, making risks harder to place. Amwins' launch of the HabVantage™ program responds to this by providing a stable and creative all-risk property coverage solution designed specifically for habitational markets, including liquor-driven hospitality and real estate.
Evolving Underwriting Practices
The underwriting approach has shifted toward more specialized, portfolio-based, and scalable solutions. Programs like HabVantage™ represent an evolution where in-house underwriting teams provide bespoke risk assessment emphasizing all-risk coverage (including flood and earthquake, which are important for real estate assets).
Market Conditions Influence Underwriting Behavior
Negotiations and creative program structures are increasingly valued to secure capacity and manage risk efficiently. While specific data on liquor-driven hospitality is not isolated in the results, trends in construction and habitational property markets—key components of real estate—show fragmented markets with competitive conditions in some sectors but tightening in others, especially where adverse loss histories or complex exposures exist.
A More Challenging Market Environment
The report signals a more challenging market environment characterized by harder-to-place risks and conservative capacity, necessitating innovative and flexible underwriting solutions tailored to the unique risks in liquor-driven hospitality and real estate sectors. Amwins addresses these challenges by offering exclusive, scalable programs with strong carrier backing aimed at maintaining coverage availability even in tighter market conditions.
Liquor-driven Venues and Real Estate Schedules
Liquor-driven venues face widespread non-renewals and must often pursue costly monoline placements in the E&S market. Real estate schedules see SIRs of $50,000 to $100,000+ to stay lender-compliant. Brokers and insureds face increased complexity in placing coverage, particularly for liquor-driven hospitality risks and large real estate schedules.
The Cannabis Insurance Market
Amwins has also issued a report on the cannabis insurance market in the US. The report provides a detailed analysis of current market trends, including pricing and capacity. The cannabis insurance market in the US may also present opportunities in the UK, depending on the next General Election in late 2024.
Cyber Insurance
Amwins has a new report available on the cyber insurance sector. The report provides a detailed analysis of current market trends, including pricing and capacity.
Exclusions and Rate Fluctuations
The report covers rate fluctuations, capacity, and evolving coverage trends across diverse industries. It offers insight into tightening capacity, evolving underwriting practices, and growing exclusions related to assault & battery, firearms, and sexual misconduct. However, no specific trends related to liquor-driven hospitality risks, large real estate schedules, or these exclusions were mentioned in the report.
Primary excess capacity often tops out at $2M to $3M, and carriers are increasingly unwilling to offer defense outside the limit for assault & battery cases, driving up costs and creating friction with excess markets. Coverage restrictions around firearms, sexual misconduct, and human trafficking are becoming the norm, particularly for high-risk venues.
In summary, the 2025 Hospitality & Real Estate State of the Market Report from Amwins provides valuable insights into the current state of the market for these sectors, highlighting the challenges and opportunities that lie ahead.
Specialty insurance products play a crucial role in addressing the evolving risks and mitigating the impacts of market contraction and capacity tightening for liquor-driven hospitality and real estate businesses. Finance professionals must take into account the underwriting behavior changes, such as more specialized, portfolio-based, and scalable solutions, while negotiating for capacity and managing risks efficiently.
With evolving underwriting practices and growing exclusions related to assault & battery, firearms, and sexual misconduct, it is essential for businesses, particularly high-risk venues, to consider appropriate specialty insurance coverage to mitigate potential liabilities and maintain compliance with lending requirements.
