Surplus Lines Insurance Premium Up Nationwide

July 26, 2017

A mid-year compilation of excess and surplus (E&S) insurance premium amounts by the Surplus Lines Stamping Office of Texas (SLTX) shows a 6.6 percent increase in premium nationally compared with the same period last year.

SLTX used information from the 15 managing service offices across the U.S. region in its analysis. Across the U.S., service offices reported total premium of $14.3 billion, with E&S policy items and filings up almost 11 percent.

Arizona, Utah, North Carolina and Minnesota saw the greatest premium spikes of 29 percent, 27 percent, 19 percent, and 16 percent, respectively. The positive news reported from each of these state’s executive directors were that the increases were attributed from market changes in property and construction, new/improved business technology platforms, and policy increases in premium.

California, Florida, Texas and New York all saw increases in premium volume ranging from 5 to 8 percent. These four offices represent much of the U.S. premium volume, totaling $10.9 billion of the total $14.3 billion mid-year value. This concentration is largely due to the size and regions they represent, as well as the populous and business demography of their states.

As with most states, Florida’s surplus lines premium continues in an upward trend.

“The primary factors of our 6 percent growth for the first 6 months of 2017 are an improving economy, particularly in housing, and the fact that more policies written are being renewed rather than re-entering the admitted market at the end of the period,” Gary D. Pullen, executive director of the Florida Surplus Lines Service Office, said in the SLTX announcement.

Other western states with reported E&S premium increases are Idaho (7.4 percent), Oregon (5.2 percent) and Washington (5 percent).

Overall, the 2017 mid-year review provides a good snapshot. The industry is experiencing growth in almost all regions across the U.S. Albeit soft market conditions, stability is an added factor that is as valuable in what remains to be seen for the remainder of 2017 and beyond, SLTX said.

Surplus Lines Stamping Office of Texas

Latest Comments

  • July 27, 2017 at 8:46 am
    mrbob says:
    A Nony Mouse, Interesting take on the situation. What facts can you present to back up your claim?
  • July 26, 2017 at 10:22 pm
    A Nony Mouse says:
    The amount of surplus lines premiums is a direct reflection of the states' lack of willingness to enforce their existing surplus lines laws. As long as no one complains, it's ... read more
See all comments

Add a Comment

Your email address will not be published. Required fields are marked *

*

More News
More News Features