E&S LEADERS: Embrace the Risky Future.

The property/casualty insurance industry and excess and surplus lines brokers are facing an increasingly risky environment due to various factors. Despite some lines of coverage stabilizing, new business is expected to continue flowing into the excess and surplus lines (E&S) market. The U.S. surplus lines premium showed strong growth in the first half of 2024, with a 10.1% increase in premiums compared to the same period in 2023. Structural changes in the industry, such as dedicated E&S units by major carriers, have contributed to the continued flow of business into the E&S market. The market remains diverse and dynamic, with different factors impacting different sectors. The growth in the E&S market has also led to the emergence of new carriers and investment in delegated underwriting authority enterprises (DUAEs). The article discusses the growth and opportunities in the excess and surplus (E&S) insurance market, including the rise of managing general agents (MGAs) as cost-effective alternatives for covering niche or emerging risks. The article also mentions the increase in personal lines coverage in the E&S market due to admitted insurers withdrawing from specific markets. Overall, the E&S market is experiencing a historical hard market, which presents both challenges and opportunities for insurers. [Extracted from the article]