Success through excess: How property and casualty insurers are boosting profits by entering the excess and surplus market

September 2012
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Success through excess:  How property and casualty insurers are boosting profits by entering the excess and surplus market

At a glance

It's harder than ever to win market share in standard lines. Learn how the excess and surplus market can help you turn a profit in today's tough environment.

As carriers look to grow revenue, they are finding it increasingly difficult to take market share from competitors in standard lines due to the soft pricing environment and maturity of the business. They also are evaluating ways to put their excess capital to use in new markets, often through organic expansion or acquisition. We have observed a recent upsurge in merger and acquisition (M&A) activity, specifically with insurers looking to expand into specialty lines. Excess & surplus (E&S) products—a non-admitted form of specialty insurance—are less encumbered by government regulation than standard lines and address emerging and unique risks. As a result, this market can be more profitable and less sensitive to cyclical trends, allowing for greater flexibility in the coverage offered and rates charged.

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