AM Best noted commercial auto, D&O, coverage for legal cannabis entities and cyber are prime examples of lines and industries being shunned by admitted carriers that have proven a boon for E&S players. Credit: wei/Adobe Stock AM Best noted commercial auto, D&O, coverage for legal cannabis entities and cyber are prime examples of lines and industries being shunned by admitted carriers that have proven a boon for E&S players. Credit: wei/Adobe Stock

Rating agency AM Best has updated its outlook for the U.S. excess & surplus market from stable to positive because of strong underwriting performances in the sector and admitted carriers circling the wagons against certain industries and lines.

The E&S sector has become home to accounts that have been affected by admitted carriers tightening underwriting standards and curtailing coverage in challenging markets, such as Florida and California. With freedom of rate and form, the surplus market is well-suited to take on these accounts as policy conditions and rates can be written to more accurately align with the underlying risk.

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Steve Hallo

Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]