Today, we celebrate June 28th looking at the industry through the lens of the E&S market.
Each year, June 28th is recognized as National Insurance Awareness Day. Growing in popularity, many businesses and individuals use this day as a valuable reminder to reconnect with their insurance agents. Together, they can take a quick 360-degree review of their coverage to discover any gaps and discuss potential useful extensions (e.g., Flood, Cyber Liability).
At All Risks, we look at the significance of this day in the broader context of the overall insurance industry; specifically, through the lens of the $31.4 billion1 (2018 E&S premium in 15 states; see below map) excess and surplus lines (E&S) market in which we operate. As we all know, insurance works by taking a shared resource pool of many and paying claims for the few unfortunate people who suffer loss. For many All Risks’ clients, we simply provide peace of mind by removing the worry of a loss. Only occasionally are we required to actually engage and pay claims on their behalf.
The recent start of the spring Atlantic hurricane season and major natural disasters leading the 2019 headlines all provide striking reminders of the vital role that we, in the insurance industry, play in helping communities, businesses and individuals rebuild after catastrophic loss. Most of those who suffered damages—in some cases total losses—will use the insurance proceeds to get back on their feet. The communities will rebuild and, thanks to the insurance industry, many will emerge stronger than ever. The real tragedies can be found in those communities where losses were not insured. In these cases, homes and business will be lost and individuals will be challenged to rebuild their lives.
The insurance industry plays a vital role in keeping our country, our economy, and our fellow citizens strong and resilient. However, for many companies, finding coverage can be difficult for a range of reasons. Clearly, businesses of all shapes and sizes need insurance, but what about large, unique or challenging exposures that don’t seem to fit with standard markets?
The excess and surplus (E&S) lines segment of the industry is the essential insurance market for those risks for which the standard or admitted market traditionally cannot provide coverage. E&S supplies the demand for coverage for those risks that are rejected by standard or admitted carriers, including hard-to-place risks with unique or high-loss exposures, new and emerging industry segments or products (e.g., drones & robots, cannabis & hemp, self-driving vehicles, etc.), special events, or an insured with an excessive loss history or recent claims.
Some of the more notable or unusual risks that we’ve written include:
- GL and Excess for a major energy drink brand
- GL for a large restaurant franchise
- GL for a professional sports franchise’s official DJ
- Property for an aquaculture farmer of organic jumbo sushi grade shrimp
- GL and Professional for a marquis NFL star’s sports therapy center
As the largest independent and privately-held wholesale broker in the U.S., we have a few key advantages when it comes to finding a place for unique risks. Our ability to compile and analyze data with regard to client requirements and pricing enables us to innovate in product design. Also, because the E&S business is highly concentrated by territory (more than 50 percent of yearly direct written premium is in CA, FL, TX, NY and IL), our national footprint gives us an advantage over regional brokers in that we can diversify our risk portfolio across states and industries.
From our early beginnings in 1964 as an E&S facility that began by primarily writing Property coverage with just $2.2M in premiums, we have steadily grown into an E&S industry leader. Today, we deliver comprehensive commercial and personal insurance solutions exclusively to retail agents and brokers, operating as a wholesale broker, MGA and program administrator, projecting $2.25 billion in premiums in 2019.
Our phenomenal long-term organic growth has surpassed that of our competitors for over 25 years—the result of a forward-leaning entrepreneurial culture focused on finding solutions to unique problems, all while providing world-class expertise and customer service. In upcoming posts, we’ll explore some of our key growth statistics in more detail, followed by the fundamental pillars of our growth success story.
- All Risks Difference