The excess and surplus insurance market thrives on adaptability, and in 2025, that adaptability is poised to shape broker success. Carriers are adjusting their risk appetites, brokers are competing for limited capacity, and insureds are facing rising premiums alongside shifting regulatory landscapes. Yet amid these challenges, E&S remains one of the most dynamic and opportunity-rich sectors in the property and casualty insurance industry. Brokers who understand how to navigate it can turn volatility into growth.
Understanding the E&S Market in 2025: What’s Changing?
According to Conning’s 2024 report, the U.S. excess and surplus insurance market grew at a 21% compound annual rate over the past five years, surpassing $104 billion in premiums in 2023. This rapid expansion reflects not just demand but also the increasing importance of E&S as a primary, not secondary, market for many risks. Excess and surplus carriers are stepping in where traditional markets pull back, covering everything from catastrophe-prone properties to rapidly evolving industries.
Impact of Climate Change
The forces shaping the excess and surplus insurance market today are a mix of economic pressures, natural disasters, and evolving regulatory demands. Inflation continues to push up replacement costs, forcing underwriters to reassess property valuations and pricing models.
Two major hurricanes in 2024, Helene and Milton, were the costliest insured events of the year, each causing approximately $20 billion in insured losses. These types of losses have made catastrophe-exposed properties even harder to place, with carriers reducing capacity and tightening terms.
Evolving Regulatory Landscape
In 2025, regulatory changes are introducing new complexities for brokers handling non-admitted coverage. The National Association of Insurance Commissioners (NAIC) has outlined key initiatives aimed at strengthening state-based insurance regulation, with a focus on emerging risks, financial governance, and consumer protection.
State regulators are also reviewing surplus lines tax structures and reporting requirements, which may affect how brokers handle non-admitted policies. Staying informed is essential to navigating these evolving compliance standards.
Technological Advancements
The integration of advanced technologies, such as artificial intelligence and predictive analytics, is transforming the E&S market. AI-powered underwriting tools analyze submissions in real time and flag missing details before they reach an underwriter, reducing back-and-forth delays.
Predictive analytics further enhance risk evaluation by identifying coverage gaps early, allowing brokers to refine applications proactively. As demand for tailored coverage grows, these innovations are making risk assessments more precise and placements more efficient, helping brokers navigate an increasingly complex market.
Key Challenges Brokers Face in the E&S Space
Securing coverage in the E&S market now requires more than just access to carriers. Brokers need a sharp understanding of shifting market dynamics, evolving regulations, and underwriter expectations.
Several challenges will shape the broker experience in 2025.
- Capacity is tighter for high-risk classes. Markets writing transportation, cyber, and catastrophe-exposed property risks are becoming increasingly selective, while niche areas like telemedicine and renewable energy present more flexibility.
- Regulatory shifts demand more due diligence. State-specific surplus lines regulations are evolving, requiring brokers to stay ahead of changing reporting obligations, tax structures, and licensing requirements. Ensuring accurate filings and thorough documentation will be critical to avoiding placement delays.
- Underwriting standards are more rigorous. Carriers expect thorough, well-documented submissions that clearly outline risk details. Brokers who provide incomplete applications risk being overlooked in favor of those who present a strong case from the outset.
Brokers who recognize these shifts as signals rather than setbacks can uncover new opportunities and strengthen their position in the market.
How Brokers Can Maximize Opportunities in the E&S Market
Staying agile in a shifting market gives brokers an edge in 2025. Success lies not just in watching trends but also in being willing to shift focus as opportunities emerge. As E&S carriers expand into renewable energy, telemedicine, and niche manufacturing, brokers who proactively develop expertise in these industries can position themselves as trusted advisors, creating opportunities where traditional carriers hesitate to write coverage.
Educating clients also becomes more critical in this environment. For insureds who are unfamiliar with excess and surplus insurance, the idea of non-admitted coverage can be intimidating. Brokers who can explain the advantages of customized coverage and clarify the differences between admitted and non-admitted policies will have a significant edge.
Meanwhile, digital platforms, such as automated quote and binding systems, reduce delays by ensuring complete applications reach the right carriers faster. Underwriting tools powered by artificial intelligence help brokers analyze historical claims data, call out potential red flags, and refine risk presentations before submission. Automated compliance tracking systems assist with state-specific surplus lines filings, minimizing administrative errors. These tools give brokers an edge by improving accuracy, speeding up approvals, and increasing efficiency in an evolving market.
How To Make Your Submissions Stand Out
Thorough and well-structured submissions will distinguish brokers in 2025. A compelling submission showcases a broker’s deep understanding of the account, highlights the insured’s risk-management strategies, and preemptively addresses potential underwriting concerns.
Brokers can improve submissions by following these best practices:
- Provide accurate, complete information from the start. Vague or inconsistent details slow down the process and raise unnecessary questions.
- Include a clear narrative. A strong submission explains the insured’s operations, risk-management efforts, and claims history in a way that makes sense to underwriters.
- Address red flags upfront. Carriers appreciate transparency. Explaining past losses or unique exposures along with mitigation efforts builds trust.
- Tailor each submission to fit the carrier’s appetite. Understanding where a risk aligns with a market’s focus makes a significant difference in approval speed.
- Leverage expert feedback. Working with knowledgeable wholesale brokers can provide insight into individual markets and improve submission quality.
Why Partnering With Cochrane & Company Positions Brokers for Success
For brokers seeking expert support, Cochrane & Company offers a valuable resource. With deep relationships across the excess and surplus insurance sector, Cochrane & Company helps brokers refine submissions, access specialty markets, and navigate evolving underwriting expectations. With direct carrier relationships, hands-on guidance, and real-time insights into shifting appetites, Cochrane & Company supports brokers in placing even the most challenging risks.
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.
