Staying nimble is no longer a nice-to-have in commercial property insurance – it’s a necessity. Farrah Schubmehl (pictured), office president and property and marine broker at CRC Group, says brokers must remain alert in a market defined by rapid change. “It's a very quickly shifting market,” she said. “What works today may not hold tomorrow.”
Schubmehl, whose insurance career began in 1999, compares the current environment to the hard market that followed 9/11, when she was learning the ropes at Chubb. But today’s challenges, shaped by the aftermath of a global pandemic, are markedly different. “Looking back from then to now and what we've experienced after the pandemic, it's just a different marketplace,” she said.
In contrast to earlier years when capacity was limited, Schubmehl now sees a more open landscape. The idea of “constraints,” she argues, may be outdated. “From a property perspective, I see very few constraints,” she said. Instead, brokers must navigate a market where change is constant and sector-specific trends are diverging. For instance, she notes rate reductions emerging in both chemical manufacturing and habitational markets.
Client behavior is also shifting. Insureds are becoming more at ease with retaining risk – a development Schubmehl attributes to greater education and familiarity. “The insureds are getting much more comfortable with retaining more,” she said. “They understand the dynamics better than they did in the past.”
This increase in capacity has led to faster placements. “Now we're able to put together three, four, or five hundred-million-dollar limits within days versus months,” Schubmehl said. The shift offers clients more choice and flexibility in managing exposures.
Shared and layered property programs are already reflecting this change. According to USI’s 2025 P&C Market Outlook, these placements are currently seeing average rate reductions of 5-15%, with top-tier accounts experiencing decreases of up to 20%. This marks a sharp contrast from recent years, when obtaining sufficient limits often meant prolonged negotiations.
At the same time, brokers are facing less resistance around policy terms. “I'm not personally experiencing a lot of pushback,” she said, though she noted that sublimits – such as for debris removal and ordinance or law – can sometimes become sticking points depending on occupancy.
Several emerging risks could influence how property programs are structured in the coming year. Wildfire exposure and a potentially active hurricane season remain top of mind, but Schubmehl believes the increased capacity will help brokers respond effectively. “There's just so much more to that this year, because we do have so much more capacity in the marketplace,” she said.
She also pointed to macroeconomic issues, including tariffs and geographic exposures tied to catastrophe-prone zones. These could prompt insurers and brokers to revisit terms and product designs. “I definitely think the tariff situation is an outlier that will continue to develop,” she said.
As the market continues to evolve, Schubmehl’s message to brokers is clear: stay informed, stay flexible, and be ready to move when the opportunity arises.
