Market Fluctuations


The surplus lines market has become a growing force in the commercial insurance industry, substantially increasing its share of the marketplace over time, through hard markets and soft.


“The surplus lines business historically has grown during the hard market, then it tapers off a little bit during the soft market and then grows again, but it’s a ratchet effect.”


Dick Bouhan, NAPSLO


The large amount of growth that the surplus lines market experienced in the early 2000s and then in 2006 in the wake of Hurricane Katrina continues to show in the market. During soft markets, the growth slows, but it stays fairly level. A.M. Best Co. reports show that the surplus lines sector’s share of the commercial marketplace has doubled over the last decade.


The last quarter of 2011 and 2012 will probably still be challenging, but the long-term growth of surplus lines market share is a testament to its ability to deliver valuable expertise and innovative risk solutions that simply aren’t available in the admitted market.


Copyright © 2012 by A.M. Best Company, Inc. All rights reserved. No part of this report may be reproduced, stored in a retrieval system or transmitted in any form or by any means; electronic, mechanical, photocopying, recording or otherwise.


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