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Property Management Trends in Wholesale Insurance

August 15, 2025

In recent years, the property management industry has undergone a rapid transformation — driven by technology, evolving tenant expectations, regulatory pressures, and a dynamic real estate market. These changes don’t just affect landlords and property managers; they’re also having a significant impact on how properties are underwritten, insured, and serviced.

As a retail insurance broker, staying on top of these trends is essential to anticipating client needs and working effectively with your wholesale partners. Here's a breakdown of what’s changing in property management — and how it’s reshaping the wholesale insurance landscape.

Trend #1: Technology-Driven Property Operations

Smart home devices, building automation systems, and cloud-based property management platforms are now mainstream. These tools help improve efficiency and tenant satisfaction, but they also introduce new insurance considerations.

Insurance impacts:

• Increased cyber liability exposure from interconnected devices and cloud systems.
• Need for equipment breakdown or systems failure coverage for automated building systems.
• More nuanced property valuations tied to tech infrastructure investments.

Trend #2: Short-Term Rentals and Mixed-Use Properties

The rise of Airbnb-style short-term rentals and mixed-use developments (retail plus residential) has added complexity to property management models. Many property owners are now exploring hybrid usage models to increase revenue.

Insurance impacts:

• Ambiguity around occupancy and usage can create coverage gaps.
• Carriers may require stricter underwriting or impose exclusions.
• Need for custom endorsements to properly address non-traditional exposures.

Trend #3: ESG (Environmental, Social and Governance) Criteria and Sustainability Initiatives

More property owners and managers are adopting sustainability practices to meet tenant demand and comply with local regulations. This includes energy-efficient upgrades, green building certifications, and climate resilience measures.

Insurance impacts:

• Underwriters increasingly favor properties with risk mitigation measures (such as flood-proofing, fire-resistant materials).
• Premium incentives may be available for environmentally responsible buildings.
• However, replacement costs may rise due to specialized materials or systems.

Trend #4: Rising Property and Liability Claims

Social inflation, more frequent natural catastrophes, and aging infrastructure are leading to higher claims frequency and severity — both on the property and liability side.

Key effects on the wholesale market:

• Hardening markets for habitational risks, particularly older or under-maintained properties.
• Increased loss control requirements from carriers.
• Growing importance of Excess & Surplus lines markets in placing challenging risks.

Trend #5: Regulatory and Compliance Pressures

New local and state-level regulations are increasing property management responsibilities — from tenant protections to maintenance standards and disclosure requirements.

Insurance considerations:

• Errors & Omissions exposure is increasing for property managers.
• Retail brokers should assess whether property owners carry management liability or professional liability
• Wholesalers may be able to access niche carriers that understand regulatory risk.

How Retail Brokers Can Adapt — and How Wholesalers Can Help

The best way to navigate these trends is by partnering closely with a wholesaler like IGP Specialty, whose wholesale property team understands the evolving risk landscape and offers access to specialized carriers.

Here’s how wholesalers can support retail brokers:

• Customized program development for complex or non-standard property portfolios.
• Access to specialty carriers and E&S markets that can accommodate hard-to-place risks.
• Guidance on manuscript endorsements, coverage layering, and emerging liability exposures.
• Educational resources to keep brokers informed on market changes and coverage solutions.

Final Thoughts

As property management evolves, so do the risks — and opportunities — in insuring it. Retail brokers who stay ahead of these trends and collaborate with knowledgeable wholesale partners will be better positioned to deliver value and protect their clients' assets effectively.

Have a tough property risk or need help navigating recent market changes? We’re here to help with market access, expertise, and creative solutions. ◼