The US Surplus Lines Service and Stamping Offices have reported that surplus lines premium surpassed $81 billion in 2024, reflecting a 12.1% increase from the previous year.
Premium-bearing items also grew by 9.5%, nearing 7 million transactions. This follows 2023’s $72.7 billion total premium, which marked a 14.6% year-over-year increase.
A detailed breakdown was made available on the 2024 Annual Report, which expands on insights from the Midyear Report, segmented by premium and item volume.
The report highlights surplus lines activity across nine key sectors: auto liability, auto physical damage, disability and accident & health, inland marine, non-professional liability, multi-peril, professional liability, property, and residential/homeowners insurance.
In collaboration with 15 state stamping offices, the report aligns state-level coverage classifications into these nine categories, offering a comprehensive view of the surplus lines market.
Commercial liability and commercial property remained the largest drivers of growth within the excess and surplus (E&S) lines sector. While some states reported increases in personal lines, including homeowners coverage, these policies still accounted for just 4.9% of the total market.
The report also notes that the surplus lines sector continues to serve as a critical alternative to the admitted market, offering coverage where standard insurers cannot.
It is also worth noting that total US surplus lines direct premiums written (DPW) exceeded $100 billion for the first time in 2023, reaching a record $115.6 billion. This marked a 17.4% increase over the prior year.
Ben McKay (pictured right), CEO and executive director of the Surplus Line Association (SLA) of California, noted the continued expansion of the state’s surplus lines market. He reported an 11.58% increase in premium and an 18.76% rise in total items, citing a 124% increase in residential policy transaction filings as evidence of admitted market dislocation.
However, he also said that residential lines still represent less than 7% of the California surplus lines market, with liability lines continuing to be the dominant driver.
Liability coverage, including general liability, excess, cyber, and commercial auto, remained key contributors to surplus lines growth. McKay pointed out that commercial auto premiums increased by 162% year-over-year, reflecting broader market conditions such as inflation, litigation trends, and advancements in artificial intelligence and emerging technologies.
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