Industry Issues | Surplus Lines Reform

Stamping Offices Report a 2017 Record Breaking Year in Surplus Lines Market

Market Update

The Surplus Lines Stamping Office of Texas (SLTX) reports that in 2017 the fifteen (15) surplus lines service offices experienced increases in excess and surplus (E&S) lines insurance premium, totaling $28.1 billion. This represents a premium increase of 6.4% over 2016, which corresponds with the mid-year growth reported in July 2017.

Of the $28.1 billion year-end 2017 total, $1.69 billion increase was reportedly driven by two developments: the addition of a newly created North Carolina Service Office, and the demand for E&S policies, which saw increased (10%) policy filings over 2016.

The SLTX report also indicated increases in E&S premium and policy filings for every service/stamping office, with the most notable being the state of Minnesota, which hailed 26.6% in premium growth. Other states having "double digit" increases included Utah (19.2%), North Carolina (17.1%), Oregon (16.8%), Arizona (16.4%), and Nevada (12.4%).  

The Nevada Surplus Lines Association attributed its premium growth to increased staffing of mega factories that has created a surge for housing, resulting in a residential construction boom; as well as, an increase in surplus line premium related to the legalization of recreational marijuana and its associated operations.

The Southern Region of the US reported the largest total premium at $11.8 billion. The region includes a new stamping office in North Carolina, whose $733 million premium contributed to the total Southern premium growth of 6.8%. Texas reported a record-breaking E&S premium year, ending at $5.46 billion.

Similarly, the other largest states recorded historic premium numbers: California ($6.55B), Florida ($5.25B), and NY ($4B).

For more information, see https://www.sltx.org/news/enews/2017-record-breaking-year-in-surplus-lines-market/