In what marked the highest-grossing year for the wholesale industry at the time, surplus line premiums reached $41.7 billion, an increase of nearly 15%, during 2020, according to the Surplus Lines Stamping Office of Texas (SLOT), which captures data from 15 states. The sum recorded by SLOT accounted for 63% of the sector's 2020 premiums, which in total hit $66.1 billion, according to AM Best projections. While 2020 was a record year, 2021 is on pace to surpass it. During the first half of 2021, surplus line premiums have exceeded $24 billion and premium-bearing transaction filings exceeded 2.6 million. This is more than half of the 4.94 million transactions seen in full-year 2020, according to SLOT data. Premiums increased 21.9% and transaction volume grew 7.2% during the period. The Wholesale Specialty Insurance Association reported that in Utah, Arizona and other western states, the surplus lines market is benefiting from rapid growth in construction projects, while casualty coverage lines are propelling gains in other states. Surplus lines typically perform well during tumultuous times, according to AM Best, which noted during the pandemic renewals carriers exited certain risk classes and businesses entirely, which gave surplus lines insurers the chance to underwrite and price those policies. The above slideshow highlights the top 10 U.S. specialty line groups, based on direct premiums written and market share, according to AM Best. Related:
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