The Surplus Lines Insurance (E&S Insurance) market continues to grow despite the competitive market, with premiums increasing 6.7% in 2014 and 27% from 2010 to 2014. Why? An Insurance Journal article (see here) provides some insights, including commentary from the author of this Specialty Insurance Blog. Additional information is contained in AM Best’s annual report on the Surplus Lines industry entitled 2014 Special Report U.S. Surplus Lines – Segment Review.
Growth was driven by a combination of product diversification, underwriting discipline and increasing exposures. Increased specialization in both distribution and underwriting organizations, and product customization, can also be credited with encouraging growth in surplus lines.
A key product impacting Surplus Lines insurance growth is Cyber Insurance, also called Data Breach, Privacy and Network Security coverage. Cyber Insurance has become the fastest growing surplus lines segment ever.
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