Navigating P&C Insurance Trends: A Q&A with Jencap’s Mike Schofield

The property and casualty (P&C) insurance market was one of the most talked-about topics of 2024. With 2025 in full swing, what’s the outlook for 2025? To help make sense of the issues, particularly for the self-storage industry, we sat down with Mike Schofield, Chief Revenue Officer at Jencap Program Administrators, to discuss the state of the market and what self-storage operators can expect in the year ahead.

The property and casualty insurance market was a hot topic in 2024. Can you summarize where things stand as we head into 2025?

Schofield: The P&C insurance market is finishing the year on a strong note. We’re seeing robust premium growth, slowing claims cost inflation, higher investment yields, and tighter underwriting practices that have solidified profitability across the industry. However, challenges remain. Expanding self-storage assets into high-risk areas has increased exposure to catastrophic events, requiring operators to be more strategic in managing risks.

What are the main drivers of property claims for self-storage operators?

Schofield: Severe convective storms — including heavy rain, hail, wind, and tornadoes — have overtaken hurricanes as the leading cause of aggregate losses. These events are particularly concerning in areas where hailstorm frequency and severity are rising. Wildfires also pose significant risks, especially in zones where admitted carriers are pulling back, leaving excess and surplus (E&S) carriers to step in. With these natural disasters becoming more common, self-storage operators in high-risk areas are seeing increased claims and premium rates. We are witnessing this scenario in the devastating Greater Los Angeles wildfires.

What steps can self-storage operators – or property owners in general – take to mitigate rising premiums?

Schofield: The key is to focus on reducing risk exposure and improving the insurability of the property. This starts with investing in hail-resistant roofing and storm-proof construction to better withstand severe weather events. In wildfire-prone areas, creating defensible spaces around properties and using fire-resistant materials can make a big difference.

Working with an experienced insurance agent or broker is also critical. These professionals understand the unique challenges of self-storage facilities and can help negotiate favorable terms with carriers. Coverage flexibility is another important element. Experienced agents are able to identify insurance providers that offer flexibility and customization in coverages, deductibles, and limits, as well as to educate their clients. Flexibility on behalf of the carrier and property owner can make a high-risk facility more appealing to insurers.

Are there opportunities amid the challenges for self-storage operators?

Schofield: Definitely. Carriers remain competitive for low-risk business, which presents opportunities for operators to secure favorable terms for properties in areas less prone to catastrophic weather, wildfire, and other exposures. Additionally, E&S markets continue to provide tailored solutions for higher-risk properties. For operators willing to invest in robust risk-management practices and build strong partnerships with their insurance agents, there’s potential not just to navigate challenges but to emerge stronger and more resilient.

What’s the key takeaway for self-storage operators preparing for 2025?

Schofield: The insurance market is complex, but operators can position themselves for long-term success by prioritizing risk management and working closely with knowledgeable insurance agents as well as specialty providers like MiniCo. Staying informed and proactive is essential to navigating the current landscape effectively.”

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For more of Mike Schofield’s insights into insurance solutions for self-storage business, click here to read his recent column in Messenger magazine.