Surplus Lines — Hitting New Premium Record

The U.S. Surplus Lines Service and Stamping Offices said the first six months of 2023 saw surplus lines premiums hit close to $36 billion. That’s a 16% jump compared to the first six months of 2022.

The premium increase broke last year’s record-breaking mid-year total of $31 billion and a 32.4% increase.

The number of transactions rose 2.6% to 2.9 million.

The PIA Western Alliance state of California, Texas and Florida had the highest premium totals. Florida led the way with $8.65 billion, California hit $7.83 billion and Texas had $7.21 billion.

The Wholesale & Specialty Insurance Association (WSIA) said commercial liability and commercial property were the bulk of the premiums. Some states also noted a rise in personal lines coverage.

Ben McKay is the CEO of the Surplus Lines Association of California. He said California’s record growth from 2018 to 2022 is 77%.

“General liability is down 8% from last year and makes up 25% of the policies while cyber, commercial difference in conditions, and multiperil homeowners are up nearly 50% in total premium,” McKay said. “Our experience in the first half of 2023 might indicate a softening of certain liability coverages, or we could be seeing a short-term aberration. California property lines clearly continue to experience a hard market.”

Source link: Insurance Journal —

About PIA Western Alliance

The Professional Insurance Agents Western Alliance is a membership organization promoting and enhancing the success of independent agencies seeking to grow, learn and be heard within the industry.


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