2019's Excess & Surplus market is a different animal

Reduced capacity, particularly in the commercial property space, is sending insureds looking for creative alternatives in their risk management portfolio. (iStock)

Rescue workers routinely enter places others are running away from. The E&S market is a bit like that. Non-admitted carriers seek out the most challenging risks — the ones other markets are simply not equipped to handle, whether from an appetite, financial strength or underwriting experience standpoint.

The market is often misunderstood. It’s often assumed (even by those in the industry) that risks covered by the E&S market are distressed ones with the potential for high severity and/or high frequency that are virtually impossible to place in the admitted market.