The excess and surplus lines market continued to grow in 2024, with premium reaching more than $81 billion, according to annual reports from 15 state stamping offices released by the Wholesale & Specialty Insurance Association (WSIA).
2024 premiums reflected a 12.1% increase over 2023, when premiums grew 14.6% over the prior year to about $72.7 billion. The last two years follow the record-breaking numbers of 2022 when premiums grew more than 24% to $63 billion. Stamping office states accounted for 63% of U.S. surplus lines premium in 2024.
Transactions were up 9.5% to nearly 7 million in 2024. Commercial liability and commercial property remain dominant lines of business in the excess & surplus lines market. Premiums in these lines each increased about 11% to about $30.2 billion and $26.9 billion, respectively, in 2023. The two lines of business represent about 70% of total surplus lines premium from the reporting offices.
Auto liability and personal property had the highest upticks in E&S premium growth – 61.1% and 31.8%, respectively. The report also breaks down data by state, revealing where risk is flowing to the E&S market. For instance, personal property transactions increased the most in Texas (63.3%) and California (60.9%).
Ben McKay, CEO and executive director of the Surplus Lines Association of California, said the state saw a 124% increase in transaction filings within the residential lines of business, “underscoring the continued dislocation in admitted markets.” Still, residential insurance policies account for less than 7% of the overall surplus lines market in the Golden State.
Although some states have reported increases in personal lines, these coverages represented a small portion – just 4.9% – of the overall E&S market.
“Liability lines, including general liability, excess, cyber, and commercial auto, remain a significant driver of our market,” McKay said. “In particular, commercial auto premiums have surged 162% year-over-year.”
In Florida, there was a slow-down in surplus lines growth as the year progressed, according to Mark Shealy, executive director of Florida Surplus Lines Service Office.
“Notably, commercial property saw a 3% increase in premium volume for November compared to 2023, though growth within the quarter showed signs of slowing,” Shealy added. “However, policy counts continued to rise, suggesting a stabilizing market.”
Topics Trends Excess Surplus Pricing Trends
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