Non-admitted (excess & surplus) insurance can fill gaps in risk that admitted policies can't or won't insure, offering specialized coverage. Looking for ways to gain access to the E&S market in order to get the right coverage for your customers? In this post, we dive deep into why we need E&S, and how technology, like the Bold Penguin Terminal, can help agents gain access to this growing coverage solution.
As insurance premiums rise, coverage becomes more limited, and insurers are more selective in underwriting policies, some risks can’t find coverage in the admitted market. Once rejected, agents need to go to the non-admitted market, also known as excess and surplus insurance or E&S market. Technology is transforming the E&S market with solutions enabling faster processing, better risk assessment, and greater market accessibility that results in smarter decision-making and better customer experiences.
Non-admitted, also called excess and surplus insurance (E&S), can fill gaps in risk that admitted policies can't or won't insure, offering specialized coverage for unique risks. There are a few trade-offs when enlisting E&S coverage in terms of state-backed protections and regulatory oversight. However, E&S has become an increasingly popular option for insurance solutions as admitted markets continue to limit their coverage during a protracted hard market.
According to a 2024 Reuters commentary, “This year saw a trend of insurance companies either limiting coverage or withdrawing business from certain states entirely. This widespread departure has been covered in publications ranging from The Los Angeles Times, to CNBC, to Yahoo Finance. With insurers becoming more hesitant to write new policies in particular risk-prone areas, consumers are increasingly forced to consider alternative means of procuring coverage.”
As carriers continue to depart admitted markets, the non-admitted market is experiencing tremendous growth. According to a 2024 Conning report, “The Excess and Surplus insurance market has experienced unprecedented growth, achieving a remarkable 21% compound annual growth rate over the past five years and surpassing $104 billion in premiums in 2023.”
Technology is transforming the excess and surplus insurance market, with solutions enabling faster processing, better risk assessment, and greater market accessibility that results in smarter decision-making and better customer experiences. Solutions like these are helping agents adapt to changing market conditions faster and with more agility than ever before.
Property and Casualty 360 recently summarized, “Looking ahead, the E&S market is poised to maintain its upward trajectory, according to Conning, as flexible regulatory frameworks, combined with advances in technology like artificial intelligence enable the development of more precise risk assessments and policy solutions.”
Indeed, integrating new technology solutions that lean on artificial intelligence (AI) are helping streamline antiquated processes and increase efficiency in the quote, bind, and claims workflows, thus enabling carriers to handle more volume with greater accuracy. For players in the excess and surplus insurance market, AI-driven systems can analyze large datasets and consolidate information from various sources to identify patterns and help predict future claims. This can contribute to more accurate pricing and reduced loss ratios.
The Bold Penguin Terminal has strategically partnered with RT Specialty, a leading E&S wholesaler, to address the growing demand for excess and surplus insurance coverage. Leveraging our deep industry subject matter expertise, we were able to adapt quickly and open access to insurance for several thousand business classifications, a significant portion of which would not be covered in the admitted market. Through this partnership, Terminal users can access the best coverage in both the admitted and non-admitted markets in minutes instead of hours or days, increasing their efficiency, streamlining their workflow, and closing coverage gaps.
Additionally, we’re continually enhancing the Terminal to create faster turnaround times and an improved customer experience not only for our users, but also for the business owners who are supported by agents using the Terminal. For example, all states have a requirement on the number of declinations an agent must receive before shopping in the non-admitted space. Most states require three declinations, although certain industry classes, coverage types, and locations can proceed directly to the E&S markets without first gathering declinations.
Recent Terminal enhancements have enabled users to view and capture declination details and download required forms for excess and surplus insurance submissions, eliminating the need to rekey information, further streamlining the quoting workflow, and increasing operational efficiency.
As admitted insurance carriers become increasingly restrictive in their coverage and/or withdraw from high-risk areas, E&S is expanding rapidly, filling critical coverage gaps with specialized solutions. Technology is aiding this expansion by boosting faster processing, improving assessment of risk, and streamlining workflows.
Bold Penguin’s Terminal is playing a critical role in this evolution, providing seamless access to thousands of business classifications not typically covered in admitted markets and allowing agents to secure both admitted and non-admitted excess and surplus insurance coverage within minutes. The Terminal continues to boost efficiency, eliminate manual tasks, and close gaps for businesses, helping fulfill our mission to simplify commercial insurance.
Want to see for yourself how the Terminal can help provide access to excess and surplus insurance?
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