After surpassing the $100 billion threshold mark in direct premiums written for the first time in 2023, the surplus lines market grew by another 12.3% in 2024 to just under $130 billion, according to the recently released AM Best Market Segment Report.
While the degree of growth was lower on a year-over-year basis in 2024 than in 2023 (12.3% in 2024 compared to 17.4% in 2023), 2024 marks the seventh consecutive year of double-digit growth, Best noted in the report.
The larger percentage of property/casualty business served by the surplus lines industry is here to stay. Some of the risks that have entered the surplus lines market in recent years are more than likely going to be “stickier” in terms of them staying in surplus lines, David Blades, associate director, AM Best Rating Services, told Insurance Journal.
One area of the market that has helped maintain premium momentum in surplus lines are the growing number of “niche distributors” such as managing general agencies and program administrators focused exclusively on specialty business, Blades added.
“Insurers looking to provide solutions for difficult risks that continue to become more complex have necessitated broader partnerships with wholesale insurance brokers, MGAs, program managers, and other entities,” the report said. “Moreover, it has increasingly involved the delegation of an underwriting authority and other responsibilities to utilize these relationships most advantageously.” Those relationships with niche distributors are aiding the surplus lines market and helping to sustain the premium growth.
According to data from U.S. surplus lines service and stamping offices in 15 states, mid-year premium reached $46.2 billion from the 3.7 million items filed so far in 2025. These figures represent a 13.2% increase in premium and a 12.4% rise in items filed compared to the same period in 2024, the 2025 Midyear Report revealed. “The U.S. surplus lines landscape in 2024 and through the first half of 2025 continues to reflect a competitive market characterized by insurers seeking to grow market share in lines of coverage while focusing on risk classes to fit their risk appetite,” the report said.
Topics Excess Surplus
Was this article valuable?
Here are more articles you may enjoy.
Trump Warns Against Tylenol in Pregnancy Over Unproven Autism Fears 
Jaguar Land Rover Cyberattack Shutdown to Hit 4 Weeks; Insurance Cover in Question 
Atlantic Hurricane Season Awakens After Sleepy Start 
Insurer Says Tech Services Firms Should Pay for Insured’s Ransomware Damages From This Issue
