4 Things Retail Agents Should Look for in a Surplus Lines Carrier
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The excess and surplus market saw its ninth straight year of growth in 2020, with double-digit increases in direct written premiums. A few well-known trends have driven more business to E&S carriers in recent years.
Increased frequency of natural catastrophes and severity of weather-related losses drove hardening in the property market. Social inflation and climbing verdicts had a similar effect on casualty coverages, particularly for excess casualty placements. The pandemic exacerbated losses on both sides.
With rates rising and capacity shrinking in the admitted market, more agents have turned to the E&S space — the “market of last resort” —when the standard market isn’t an option.
More and more carriers are enhancing their E&S offerings in ways that are beneficial for retail agents to consider. These carriers’ offerings can provide certain benefits that make direct placements an alternative when this is needed by an agent.
“Retail agents increasingly need to procure both admitted and non-admitted products for their customers to create the comprehensive coverage clients need. With direct access to E&S on the rise, agents have more strategic options for finding the best opportunities to place their E&S business—options that can make it easier to serve accounts and maximize their relationships,” said Steve Mills, Head of Excess & Surplus for The Hanover Insurance Group.
In order to maximize the benefits of placing business directly with a carrier with E&S capabilities, retail agents should look for a carrier with these four characteristics.
To learn more about The Hanover Insurance Group , please visit their website.