Excess and Surplus Lines (E&S) premium exceeded $31 billion for the first six months of 2022, according to the recently released “2022 Midyear Report of the U.S. Surplus Lines Service and Stamping Offices.” The Wholesale Specialty Insurance Association (WSIA) aggregated and summarized the data gathered and disclosed individually by each state stamping office for the “Midyear Report.”
Premium rose 32.4%, and transactions increased 9.4% compared to the same period in 2021. The year-to-year premium growth rate was the highest since the stamping offices began reporting collective data in 2009. The increase in premium-bearing transactions represents the highest percentage increase since 2017.
The “Midyear Report” reflects the continued strength and stability of the E&S market amid inflation and hardening markets.
Why Go to the E&S Market?
There are several reasons why the E&S market is a viable alternative for agents, brokers, and their clients. Certain risks are outside the appetite of the standard admitted market. This may be due to the class of business or an insured’s loss history. Additionally, there have been significant changes in the market over the last few years due to underwriting unprofitability, with carriers exiting certain markets, reducing capacity, or no longer choosing to write specific product lines.
The E&S market allows agents and brokers to offer clients insurance products to protect against their exposure. In fact, the E&S market generally thrives during difficult insurance markets and times of uncertainty and disruption as it’s nimble enough to come up with coverages to address an insured’s needs.
According to the Insurance Information Institute (I.I.I.), AM Best reported that higher losses from catastrophes, social inflation, and COVID-19 have led to rising standard market pricing and a changing appetite, which has enabled E&S carriers to step in with product solutions. E&S carriers have the underwriting flexibility and ability to assist in the development of innovative industry-specific and product-specific solutions.
About Seneca Insurance Company
Seneca Insurance Company operates two legal entities offering products on an admitted and non-admitted basis: Seneca Insurance Company and Seneca Specialty Insurance Company. Our E&S market includes products for businesses in bankruptcy and vacant commercial properties, habitational, senior living, and industrial risks. We can also provide Excess Property layers with a capacity of up to $75 million.