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 — https://www.insurancejournal.com/news/national/2023/08/10/734781.htm