The excess and surplus (E&S) insurance market has had to react to many surprises in the past few years such as a pandemic, supply chain issues, and climate change-related disasters. These complex risks have sharply increased the demand for excess and surplus coverage, and there are a number of emerging trends as a result.
As an MGA committed to providing innovative excess and surplus insurance solutions, Cochrane & Company is always at the forefront of trends in the E&S market. Here are some of the trends that insurance brokers need to be aware of in order to effectively serve their clients.
5 Emerging Trends in Excess and Surplus Insurance
The 2023 trends in excess and surplus insurance have been in response to issues such as traditional insurance carriers limiting their coverage due to catastrophic events, difficulties hiring and retaining good talent, capacity issues, monetary challenges, as well as social inflation. They have pushed the E&S market to respond in a few key ways.
1. Increasing capacity and competition
Traditional insurance has moved away from covering risks such as natural disasters caused by climate change. E&S insurers have recognized these market opportunities and stepped up their coverage in response.
As such, there is increased competition in the E&S market for pricing, coverage options, and accessibility for insurance brokers. A 2022 S&P report indicates that the U.S. E&S market saw a substantial 27.6% increase in direct premium written, reaching $37.60 billion in the first half of 2022. Cochrane & Company has risen to meet this new need for comprehensive coverage and solutions.
2. Evolving underwriting practices
Underwriting practices in the excess and surplus market have undergone a change toward becoming more dynamic and flexible. The utilization of artificial intelligence, advanced data analytics, and predictive modeling means that underwriting is more well-informed, efficient, and tailored than ever.
Cochrane & Company integrates advanced technology, like data exchange and integration automation, to enhance risk assessment and streamline underwriting, creating a more efficient E&S process.
3. Focusing on niche and emerging risks
As new industries and risk areas emerge, insurance brokers are having to adapt to unique risk profiles. Cryptocurrency, cyber liability, cannabis, climate change, and more — each of these industries has niche and emerging risks that take time and effort to address.
With over 60 years of experience, Cochrane & Co. has proven its capability intailoring E&S insurance solutions to meet the specific needs of these novel sectors.
4. Addressing climate change risks
The recognition of climate change as a significant risk factor is growing steadily in the insurance industry. Climate-related risks such as pollution liability, renewable energy projects, and natural disasters need to be covered by innovative E&S insurance products.
Climate change risks are increasingly recognized as a major factor in the insurance industry, calling for innovative E&S products to cover these issues. Cochrane & Co., in response to these changes, continuously adapts its coverage solutions to cater to the industry’s needs.
5. Advancing claims-handling technology
There are leaps and bounds in the technology that deals with handling claims within the E&S market. Automation, digital platforms, and analytics expedite the claims process and improve the customer experience greatly.
Efficiency and customer-centrism are always at the forefront of Cochrane & Company, which is why technology is always leveraged in order to provide the best results possible.
Stay on Top of Excess and Surplus Insurance Trends With Cochrane & Company
The key trends shaping the excess and surplus market in 2023 are all about responding to world events. Insurance brokers must stay informed of trends such as increased capacity, technological advances, and climate change issues to be able to adapt and better serve their clients.
With over six decades of commitment to embracing excess and surplus trends and providing innovative solutions, Cochrane & Company is honored to act as a trusted partner for insurance brokers, navigating the evolving landscape of the E&S insurance market together.
About Cochrane & Company
For more than six decades, Cochrane & Company has been proudly at the forefront of the insurance industry. Our experience has enabled us to innovate in powerful ways, reimagining the E&S market, and providing technology solutions that make it easy to do business with us. Licensed in all 50 states, we proudly serve clients across the nation, providing personalized and powerful solutions to help you become an even better partner for your clients. Speak to one of our experienced professionals today by calling (855) 967-0069.