AM Best: Market dislocation drives growth for U.S. surplus lines (AM BestTV)
OLDWICK, N.J.–(BUSINESS WIRE)–In this episode of AMBestTV, David Blades and Robert Raber, both associate directors, AM Best, said some excess and surplus lines insurers experienced a 15-year high in premium gains during 2019. Click on http://www.ambest.com/v.asp?v=surpluslines920 to view the entire program.
Blades highlighted the level of U.S. surplus lines business volume in 2019.
“The U.S. surplus lines premium volume increased considerably,” said Blades. “In particular, U.S. surplus lines companies that write more than 50% of their total business on a surplus lines basis increased their direct premium written by almost 15%, the highest level of growth since 2006. The entire surplus lines market, including business that is written by the Lloyd’s market syndicates, grew by 11.2% in 2019.”
Raber said the COVID-19-fueled economic shifts that have impacted the surplus lines market.
“The flow of new businesses definitely changed in two different directions,” said Raber. “First, there was a temporary decline in new business coming into the U.S. surplus lines market beginning in late March and into early April, as the stay-at-home and shelter-in-place orders were implemented across the country. At the same time, rates are continuing to rise. AM Best’s expectation is that conditions are going to persist in the short term for the continuing rising of rates, as it continues to be a hardening market.”
Looking at the balance of 2020 and into 2021, AM Best anticipates this sector will continue to show resiliency.
To access the related market segment report, titled, “Expanding Opportunities Bolster Surplus Lines Growth and Operating Results,” please visit http://www3.ambest.com/bestweek/purchase.asp?record_code=300916.
Recent AMBestTV coverage includes:
- AM Best: Canada Property/Casualty Insurers Well-Positioned; Life Writers Face Volatility in 2020: Brian Lynch and Anthony McSwieney, senior financial analysts, AM Best, said 2020 has brought fewer property/casualty (P/C) claims, but has increased investment uncertainty in the Canada market: http://www.ambest.com/v.asp?v=ambcanada920.
- Hardening Market Driving Bermuda Captive Growth: Captive insurers old and new are writing more business during the hardening market, according to a panel focused on the Bermuda landscape: http://www.ambest.com/v.asp?v=ambcaptives920.
- Hard Market Driving Interest in Captives: The pandemic, economic downturn and higher insurance rates have increased interest in captive insurers, said panelists in a recent AM Best webinar: http://www.ambest.com/v.asp?v=ambcaptiverecut920.
- New Data Sources, AI Changing Commercial Underwriting: The “explosion of digital economy” and use of artificial intelligence is improving underwriting, according to the “Using New Data to Out-Select the Competition,” panel: http://www.ambest.com/v.asp?v=carpedata920.
AM BestTV covers exclusive AM Best and insurance industry information and reports, targeted topics and key developments in the insurance, reinsurance and related sectors daily. Sign up for alerts of episodes at www.ambest.com/multimedia/ambtvsignup.html. View AM BestTV episodes at www.ambest.tv.
AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in New York, London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit www.ambest.com.
Copyright © 2020 by A.M. Best Company, Inc. and/or its affiliates. ALL RIGHTS RESERVED.
Contacts
Lee McDonald
Group Vice President, Publication and News Services
+1 908 439 2200, ext. 5561
lee.mcdonald@ambest.com
