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What are the biggest growth drivers in excess & surplus lines, and where are the best opportunities for brokers in this booming market? Heather Turner reports THE SURPLUS LINES market continues to perform strongly, even amid lingering political uncertainty and endless waves of digital disruption and natural catastrophes. For the last seven years, E&S service offices have seen premium increase by close to 70%, according to Norma Carabajal Essary, CEO of the Surplus Lines Stamping Office of Texas [SLTX]. “The current state of the market shows significant stability, interest and growth,” Essary says. “Part of it is there is a bit better understanding from other stakeholders about what surplus lines provides and what it does in the industry.” This year, the 15 managing service offices across the country witnessed another increase in total premium, which jumped by more than 9% to reach $15.7 billion, according to the 2018 mid-year analysis conducted by SLTX. Premium volume from the largest contributing states – California, Florida, Texas and New York – added up to $12.1 billion, accounting for 77% of total premium, and these markets’ individual premium growth rates ranged from 8% to 13%. Of the remaining individual states, Washington,


Utah and Illinois all saw double-digit increases, while four other states – Oregon, Arizona, Idaho and Nevada – managed to achieve more than 5% growth in premium. Meanwhile, total filings reached 2.2 million, a 5% increase from 2017, and seven states –

after experiencing some of the best premium growth in the country last year. Nevertheless, the positive numbers across the board continue to support an overall picture of a growing surplus lines market. “The wholesale, specialty and surplus lines

“Retail agents and insurance buyers continue to trust and rely on their wholesale partners to solve their most complex risks. As a result, we see top-line growth in most of the top five excess & surplus product lines” Brady Kelley, WSIA Illinois, Minnesota, Nevada, North Carolina, Oregon, Pennsylvania and Utah – experienced an increase of more than 10%. Interestingly, despite seeing more filings, Minnesota was the only state to record a decrease in premium halfway through the year, a bit of a downturn

marketplace is strong, highly competitive and on a continued pattern of growth,” says Brady Kelley, executive director of the Wholesale and Specialty Insurance Association [WSIA]. “Surplus lines premium reached a historic $42.4 billion in direct written premium in


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31/08/2018 4:42:55 AM

Profile for Key Media

Insurance Business America issue 6.09  

The magazine for America’s insurance broking and advice community.

Insurance Business America issue 6.09  

The magazine for America’s insurance broking and advice community.

Profile for keymedia