Executive Summary: Specialty insurance has experienced significant growth in recent years. Greg Gaydos, senior business development executive at Zywave, looks at the reasons and advises how to best take advantage of its wealth of opportunities.
The excess and surplus lines and specialty insurance market is booming and looks set to continue its upward trajectory. The question is whether the sector currently has the resources to take advantage of these business opportunities.
The financial statistics are testament to this success: E&S saw double-digit, year-over-year growth for four consecutive years, from 2018 to 2022. According to S&P Global, the market grew by 20% in 2022, reaching $75.5 billion in premiums. (Editor’s Note: For more recent data, see related article: “Continued Growth for Surplus Lines in 2023 as Premiums Up 14.6%“).
The E&S market is expected to continue to grow in the coming years, with a compound annual growth rate of 15.2 percent from 2020 to 2027, taking the market to $125.9 billion, according to a 2020 report from Allied Market Research. In November 2023, AM Best changed its outlook for E&S from stabl