BY SHAWN MOYNIHAN
Once upon a time, the Surplus Lines industry was regarded as the “safety valve” of the Property & Casualty industry – the avenue for risks that
were simply too complex, too unusual, or in
some cases, just not desirable enough for the
mainstream market to take on.
How times have changed. Over the last 25
years, E&S has gained an increasing share of
the P&C marketplace; the segment has grown
by more than 35% since 2011, despite contin-
ued downward pressure on rates. Increasing
demand for solutions to complex risks and
new product innovation have been and con-
tinue to be key drivers.
Empowered by freedom of rate and form,
the E&S business has become the greatest
source of organic growth in the P&C space,
where solutions are crafted for exposures both
brand-new and those evolving within existing
lines of business that now, thanks to cyber
threats, will never again be the same. Where
there are unusual threats to business, Surplus
Lines can identify and seize opportunity – and
these days, that opportunity never seems to
stop knocking.
“Surplus Lines is no longer that ‘market of
last resort,’ it’s the nexus of innovation,” says
Matt Power, President, National Branch and
Head of Wholesale Broker Engagement
at Lexington Insurance Co.
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— Wholesale partner
NEWS
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CONTINUED ON PAGE 6
The spirit of innovation that
defines the E&S sector is
alive and well, with coverage
solutions still being crafted in a
market that rewards the bold.
‘SPECIALTY’
TREATMENT:
THE ASCENT OF
SURPLUS LINES
