Premium increases 12.1% from the previous year.
The US Surplus Lines Service and Stamping Offices stated that surplus lines premiums exceeded $81 billion in 2024, representing a 12.1% rise over the previous year.
Premium-bearing items also increased by 9.5%, with over 7 million transactions. This follows the $72.7 billion total premium for 2023, which increased 14.6% year on year.
The 2024 Annual Report provides a detailed breakdown of findings from the Midyear Report, separated by premium and item volume.
The research focusses on surplus lines activities in nine important sectors: auto liability, auto physical damage, disability and accident & health, inland marine, non-professional liability, multi-peril, professional liability, property, and residential/homeowner insurance.
In partnership with 15 state stamping offices, the research organises state-level coverage classifications into nine categories, providing a comprehensive view of the surplus lines market.
Commercial liability and commercial property remained the primary drivers of growth in the excess and surplus (E&S) lines market. While several states recorded a gain in personal lines, including homeowners insurance, these policies still accounted for only 4.9% of the entire market.
The research also highlights that the surplus lines sector remains an important alternative to the accepted market, providing coverage when normal insurers cannot.
It’s also important to note that in 2023, the total US surplus lines direct premiums written (DPW) hit a record $115.6 billion, surpassing $100 billion for the first time. This represented a 17.4% rise from the previous year.
The CEO and executive director of the Surplus Line Association (SLA) of California, Ben McKay (shown right), observed that the market for surplus lines in the state is still growing. Citing a 124% increase in residential policy transaction filings as proof of acknowledged market upheaval, he cited an 18.76% increase in total items and an 11.58% increase in premiums.
He added, though, that liability lines continue to be the main driver of the California surplus lines market, with residential lines accounting for less than 7% of the total.
General liability, excess, cyber, and commercial car liability coverage continued to be major factors in the expansion of surplus lines. According to McKay, commercial auto premiums rose 162% annually, which was indicative of broader market factors like inflation, litigation patterns, and developments in artificial intelligence and developing technology.
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