Industry Background:
Surplus lines insurance covers property and casualty policies, which protects against the financial risks which are too high to borne alone by the regular insurance company. This insurance can be bought by individual or group, the surplus lines insurance can be bought from the insurer without the license in the insured's state. This type of insurance also called a safety valve and consists of the component like underwriting and pricing, risk control services and claim services.This growth is primarily driven by Increasing Demand for the Insurance Coverage in Developing Economies and Growing Need for the Property and Casualty Policies to Deal with Higher Financial Risks.
Globally, a noticeable market trend is evident Increasing Popularity of Surplus Lines Insurance for Group Application. Major Players, such as Atlantic Casualty Insurance Company (United States), Liberty Surplus Insurance Corporation (United States), Admiral Insurance Group (United States), Berkshire Hathaway International Insurance Limited (United Kingdom), Penn-Star Insurance Company (United States), Swiss Re International SE (Switzerland), Fortegra Financial Corporation (United States), Global Indemnity Group (United States), Sirius International Insurance (United Kingdom) and HSB Specialty Insurance Company (United States) etc have either set up their manufacturing facilities or are planning to start new provision in the dominated region in the upcoming years.
On 30th September 2020, Fortegra Financial Corporation a leading specialty insurer and subsidiary of Tiptree Inc. announced the formation of a new excess and surplus lines subsidiary, Fortegra Specialty Insurance Company. Now that it has received approval in its domicile state of Arizona, Fortegra’s new E&S subsidiary is working to obtain the remaining regulatory approvals necessary to conduct business throughout the United States.
Regulatory Insights:
"Each U.S.-based (domestic) surplus lines company is licensed (admitted) in at least one of the 50 states or other U.S. jurisdiction and must fulfill the solvency requirements of that state or jurisdiction. Thus, as with admitted insurers, the surplus lines insurer’s state of domicile becomes the financial solvency regulator of that insurer. Insurers based outside the United States, known as alien insurers, represent a substantial portion of the surplus lines market writing about 20 percent of the U.S. surplus lines premium annually. Lloyd’s of London writes between 85 and 90 percent of the alien surplus lines market each year with the bulk of the remaining premium being written by insurers based in the United Kingdom."
Market Drivers
- Increasing Demand for the Insurance Coverage in Developing Economies
- Growing Need for the Property and Casualty Policies to Deal with Higher Financial Risks
Market Trend
- Increasing Popularity of Surplus Lines Insurance for Group Application
Restraints
- More Expenses and Higher Risks Associated with the Surplus Lines Insurance than Regular Insurance
Opportunities
Surging Demand for the Easy Underwriting and Pricing and Claim Services will Boost the Surplus Lines Insurance Market
Challenges
Presence of Numerous Insurance with Fluctuating Policy Rates
AMA Research follow a focused and realistic research framework that provides the ability to study the crucial market dynamics in several regions across the world. Moreover, an in-depth assessment is mostly conducted by our analysts on geographical regions to provide clients and businesses the opportunity to dominate in niche markets and expand in emerging markets across the globe. This market research study also showcase the spontaneously changing Players landscape impacting the growth of the market. Furthermore, our market researchers extensively analyse the products and services offered by multiple players competing to increase their market share and presence.
Customization in the Report
AMA Research features not only specific market forecasts, but also include significant value-added commentary on:
- Market Trends
- Technological Trends and Innovations
- Market Maturity Indicators
- Growth Drivers and Constraints
- New Entrants into the Market & Entry/Exit Barriers
- To Seize Powerful Market Opportunities
- Identify Key Business Segments, Market Proposition & Gap Analysis
Against this Challenging Backdrop, Surplus Lines Insurance Study Sheds Light on
— The Surplus Lines Insurance Market status quo and key characteristics. To end this, Analyst at AMA organize and took survey of the Surplus Lines Insurance industry Players. The resultant snapshot serves as a basis for understanding why and how the industry can be expected to change.
— Where Surplus Lines Insurance industry is heading and what are the top priorities. Insights are drawn from financial analysis, the survey and interviews with key executives and industry experts.
— How every company in this diverse set of Players can best navigate the emerging competition landscape and follow a strategy that helps them position to hold value they currently claim, or capture the new addressable opportunity.