The “2016 Special Report U.S. Surplus Lines – Segment Review,”produced by A.M. Best and sponsored by the Derek Hughes/NAPSLO Educational Foundation, reports that the surplus lines market is financially sound. The trend of no surplus lines impairments for the past decade extended through 2015, and as of Aug. 15, 2016, fully 100 percent of domestic surplus lines carriers were rated Good or higher with 97 percent of those rated Excellent to Exceptional.

This financial strength is critical to the continued strength for the market and, NAPSLO members believe, to the value of the wholesale distribution system within the broader insurance industry.

Gil Hine, NAPSLO President and president of McClelland & Hine, said that with this good news for the market it is perhaps more important than ever for NAPSLO and its members to spread that word to the retail community. “We need to tell the industry that the wholesale distribution system works,” Hine said. “It’s important to note that in addition to being financially stable, the wholesale distribution system really provides value to the insurance consumer.”