I participated in an A.M. Best Co. webinar titled Inside Today’s Surplus Lines Market (see here, here & here). The panel reviewed the surplus lines sector of the U.S. insurance market and the highlights from a new report on that sector. Since 1994, the Derek Hughes/NAPSLO Educational Foundation (NAPSLO) has provided a grant to A.M. Best to produce a report on the surplus lines insurance sector. The report examines regulatory developments, distribution, solvency, availability, and coverage. The surplus lines market provides coverage for risks that the standard insurance market is unwilling or unable to insure (see here).
A few of the key quotes:
Income statements, rather than balance sheets, are driving rate movement in the market - David Bresnahan, President, Lexington Insurance Co.
The market is heading in the right direction. We are seeing some gradual increase in rates and tightening as we go, but it's fragmented. – Robert Sargent, President, Tennant Risk Services, & President, the National Association of Professional Surplus Lines Offices (NAPSLO)
There is still a lot of competition in the market – Brady Kelley, Executive Director, the National Association of Professional Surplus Lines Offices (NAPSLO)