Do Real E&S Markets or E&S Underwriters Exist Any More?
Posted: Fri Jan 25, 2013 12:36 pm
I've been in the P&C business for over 30 years and observed what I consider to be a very clear and disappointing shift in the underwriting appetite and philosophy of E&S markets. Has anyone else noticed this?
The E&S market exists to write risks that standard carriers won't write because of unique hazards or characteristics. You used to be able to access E&S markets that had some flexibility and creativity and essentially negotiated coverage and pricing based on individual risk characteristics. The premise being that essentially any risk could be creatively underwritten as long as an adequate price could be identified and was obtained for the exposure.
Now all the E&S companies seem to be glorified boutique underwriters that have just as many eligibility requirements as standard market carriers. They want the cream of the crop substandard business and stick their nose up at anything less.
Every company is entitled to make a fair profit. And obviously some exposures can't be written regardless of price. But there are many that can be written with good sound practical risk underwriting. Does it still exist in the E&S market? Or is everything now done off a firm "checklist"?
The E&S market exists to write risks that standard carriers won't write because of unique hazards or characteristics. You used to be able to access E&S markets that had some flexibility and creativity and essentially negotiated coverage and pricing based on individual risk characteristics. The premise being that essentially any risk could be creatively underwritten as long as an adequate price could be identified and was obtained for the exposure.
Now all the E&S companies seem to be glorified boutique underwriters that have just as many eligibility requirements as standard market carriers. They want the cream of the crop substandard business and stick their nose up at anything less.
Every company is entitled to make a fair profit. And obviously some exposures can't be written regardless of price. But there are many that can be written with good sound practical risk underwriting. Does it still exist in the E&S market? Or is everything now done off a firm "checklist"?