You’ve probably heard the chatter. The property market is "softening." On the surface, that sounds like a welcome sigh of relief after years of tough conditions. But if you’re feeling like the reality on the ground is a lot more complicated, you’re not alone.
I recently had the chance to sit down and have a real, honest conversation with Tonya Courtney, the SVP of Brokerage Property at Nationwide. I wanted to get past the headlines and understand what’s actually happening behind the scenes. And let me tell you, she cut right through the noise.
What I walked away with is this: yes, things are changing, but don't mistake a competitive market for a simple one. The same old monsters—inflation, climate change, and unpredictable capital—are still very much in the room. The game hasn't changed, but the way smart carriers are playing it certainly has.
So, Is the Market Getting Easier or Harder?
This was the first thing I wanted to know. Tonya put it perfectly: "We’re in a dynamic moment. The market is softening, but the complexity hasn’t gone away."
Think of it like this: the price of admission might be a little lower, but the rollercoaster inside is just as intense. At a carrier like Nationwide, the focus has shifted to extreme precision. It’s all about disciplined underwriting, being strategic about where you put your capital, and building real partnerships that last.
It’s not just about being a huge Fortune 100 company, either. Tonya stressed that any carrier, big or small, that stays disciplined is helping keep the market from going off the rails. They’re built for resilience, which means making smart calls even when everyone else is getting swept up in the latest trend. It’s a constant balancing act between softening rates and keeping the company financially strong enough to handle the next big catastrophe.
The Secret to Staying Afloat? It's Not About Chasing Market Share
We’ve all seen it happen. A market softens, and suddenly it’s a race to the bottom. Carriers start chasing premium and market share, often at the expense of common sense.
Tonya was crystal clear that this is a terrible long-term strategy. Experience has taught them that the carriers who are still standing strong after a crisis are the ones who prioritized stability over short-term growth.
For a company with a reputation to protect, it’s all about the fundamentals: reputation, stability, precision, and smart capital management. When you focus on those things, you build trust with your broker partners. You’re not just a transaction; you’re in it together for the long haul. It’s a collective commitment to thoughtful underwriting that ultimately makes the entire industry stronger.
How Nationwide Picks Its Partners (And Why It Matters)
I was curious about how they manage their relationships on the brokerage property side. It turns out, they use an exclusive wholesale distribution model.
Basically, they started with a small, hand-picked group of broker partners. Why? Because when you’re essentially a startup within a massive company, you can’t afford to have partners who don’t get what you’re trying to do.
They look for brokers who are aligned with their strategy and share their vision. It creates a powerful dynamic where both sides genuinely want the other to succeed. It’s a true partnership, not just a numbers game.
"Gut Feel" is Out: How Tech is Revolutionizing Property Valuations
This is where things got really interesting. For years, underwriting involved a lot of broker-provided information and, let's be honest, a bit of "gut feel." Not anymore.
The game has completely changed with AI, new technology, and data analytics. As Tonya explained, these tools give them a much higher degree of certainty about the risks they’re taking on.
Here’s a perfect example she shared: Seven years ago, if a broker said a building was worth $1 million, that’s the number you worked with. Today, Nationwide’s analytics might look at that same building and say, "Actually, that’s a $4 million property." That changes everything—how much capacity you're willing to offer, where you set your attachment points, and how you price the risk.
AI is even helping them verify basic construction details. A simple "FR" on a schedule could mean "Fire Resistive" or it could mean "Frame." That’s a massive difference in risk! Now, with data tools and geospatial inputs, they can see for themselves and understand the true exposure. It’s a level of insight that was pure science fiction a decade ago.
Why Getting Valuations Right is More Critical Than Ever
This isn't just about cool tech. Accurate property valuation has become foundational, especially since the pandemic. Tonya pointed out that building values have shot up more than 30% since 2020. If your valuations are off, your entire portfolio is built on a shaky foundation. In today's market, precision isn't just nice to have; it's essential for survival.
The Risky Business of Apartments and Wood-Frame Buildings
Some classes of business are changing faster than others. Tonya highlighted two big ones: habitational (think apartment buildings) and frame construction.
We're seeing a lot of "podium-style" construction, where you have a concrete base with multiple stories of wood-frame apartments built on top. While it’s an efficient design, it concentrates a huge amount of value in one spot. A single fire could wipe out a $70 million structure. That kind of concentrated risk demands incredibly precise pricing and disciplined underwriting.
At the same time, more carriers are jumping back into the market for frame risks, offering bigger lines and better terms. But Tonya offered a crucial reminder: just because capacity is available doesn't change the fact that wood is, well, highly flammable.
A Warning for Everyone: "Softening Does Not Equal Safety"
If there was one line from our conversation that I wrote down and underlined twice, it was this: "Softening does not equal safety."
It’s so important to remember. Just because prices are more competitive doesn't mean the risks have gone away. In fact, climate data shows the opposite. Wildfires, hurricanes, and severe storms are getting more frequent and more destructive. A lower rate doesn't make a building less likely to burn down or get hit by a hailstorm.
The Overlooked Ingredient in a Great Claims Experience: Empathy
When a loss happens, everyone wants speed. Get the check out the door, and get it done fast. But Tonya brought up something that doesn't get talked about nearly enough: empathy.
As carriers, we’re dealing with people whose lives have just been turned upside down. Their homes, their businesses, their financial security—it’s all on the line. Remembering the incredible stress they’re under is vital. Showing that you genuinely care about the outcome and handling the claim with sensitivity can make all the difference.
So, How Do You Actually Teach Empathy?
It’s one thing to say you value empathy; it’s another to build it into your company’s DNA. For Tonya, it’s about leadership and reinforcement. When empathy is part of your culture, you have to live it every day.
That means calling out behavior that doesn’t align with your values and modeling the right behavior yourself. It’s not about being perfect, but about working hard every day to show your team that it’s more than just lip service. When people feel that deeper level of care, it creates an environment of trust and safety where everyone can do their best work.
It's Not Just About AI: The Other Tech Tools Changing the Game
While AI gets all the headlines, other technologies are quietly making a huge impact, especially in the complex world of E&S property.
- Geospatial Data: Satellite imagery now lets underwriters assess roof conditions from their desks. This is a massive advantage, especially in coastal areas where getting a physical inspection might be difficult or impossible.
- Valuation Tools: These remain absolutely essential for accurate pricing and setting the right attachment points.
- Catastrophe Modeling: It’s not perfect, but it’s getting better, especially for risks like wildfires. (Severe convective storms are still a tough nut to crack, though.)
- Underwriting Workbenches: Gone are the days of manually sifting through massive Excel spreadsheets. These platforms pull all the data together in one place, flagging things like coastal proximity or construction type in real time. It makes underwriters faster, smarter, and more accurate.
Are Underwriters Drowning in Data?
With all this new tech, you have to wonder if underwriters are overwhelmed. The sheer volume of data is staggering.
Tonya sees this as a leadership responsibility. It’s her job to sort through all the different AI solutions and data platforms to find the ones that will actually help her team, not just add more noise. The goal is to streamline the process and remove friction so underwriters can focus on what they do best: making smart, strategic decisions.
Will a Robot Take Your Underwriter's Job? (Spoiler: Probably Not)
This is the big question on everyone’s mind. Tonya’s take is passionate and clear: AI will not replace human underwriters. But—and this is a big but—underwriters who use AI effectively will absolutely outperform those who don’t.
AI is a force multiplier, not a replacement. It provides sharper analysis and faster insights. It helps us move from educated guesses to informed decisions. But the final call still rests with a person. Risk management requires judgment, context, and relationships—things a machine can’t replicate. The goal is to empower people with technology, not replace them.
Why Insurance Carriers Are Suddenly Taking on Bigger Risks
You may have noticed carriers being willing to offer larger lines of coverage lately. In the past, a $2.5 to $5 million line was pretty standard for E&S. Now, those numbers are climbing.
This isn’t happening because carriers are getting reckless. It’s because the better tools and deeper data we’ve been talking about are giving them more confidence. With a clearer view of their total exposure and more accurate valuations, they can make more informed decisions about how to deploy their capacity.
The facultative reinsurance market is also super competitive right now, which helps carriers stretch their capacity while still managing their risk. It’s about smarter deployment, not just bigger bets.
Navigating a Minefield: How Catastrophes Are Reshaping Policies
As catastrophic events become more common, the fine print on policies has become non-negotiable. Tonya emphasized the intense diligence that goes into reviewing every policy form, whether it’s a broker’s form or their own. They have to be absolutely sure that the language aligns with their underwriting intent.
They are also laser-focused on selecting the right risks. In a soft market, you can’t let price be your only guide. A high rate on a terrible risk is still a terrible risk. It’s about surgical capital allocation and being assertive about what you will and won’t accept in a contract.
In today's world, where the next big CAT event is always around the corner, that level of precision isn't just good business—it's essential. And it’s that blend of high-tech tools and old-school discipline that will separate the winners from the losers in the years to come.
