Admitted insurers’ renewed interest in commercial accounts placed in the excess and surplus lines market is giving brokers more placement options. But a competitive quote leaves an important question unanswered: will the carrier still want the business at the next renewal?
Speaking during Burns & Wilcox’s fourth-quarter market outlook webinar, executives described a selective return focused on particular classes of business, making the durability of an insurer’s appetite a key consideration alongside price and coverage. They urged brokers to weigh that appetite’s staying power alongside price, coverage and underwriting flexibility.
“That’s one of the things we always think about when we see admitted carriers jumping in. How flexible will they be? Are they offering the same terms?” said Tim Pasik, senior vice president, commercial products at Burns & Wilcox. “Are they going to be there at renewal? Are they going to be in and out? Nobody likes to switch carriers all the time and maybe change coverages.”
Recent pricing data illustrates the uneven conditions behind those placement decisions. US commercial property insurance rates fell 10% in the third quarter of 2026, following a 13% decline in the previous quarter, according to Marsh’s Global Insurance Market Index. US casualty rates, however, increased 6%, with auto and umbrella/excess leading the increases.
Marsh reported expanding property capacity and intense competition, supported by strong insurer results, favorable reinsurance terms and capital inflows. In casualty, general liability capacity remained available, although insurers were cautious and scrutinizing policy terms.
Read more: US commercial insurance rates split as property falls, casualty rises
Meanwhile, surplus lines activity continues to grow. Premium reported through the 15 state stamping offices reached $47.6 billion in the first half of 2026, up 2.8% from a year earlier, according to the Wholesale & Specialty Insurance Association (WSIA).
Across commercial insurance, Pasik described a competitive environment supported by earlier rate increases and fresh capital entering through MGAs, MGUs and new insurers. Additional capacity gives brokers more placement options, but each offer still needs to be assessed against the account’s exposures and the insurer’s underwriting restrictions.
The expanding choice of markets also puts more weight on assessing the businesses behind the available capacity.
“The larger rate increases we’ve gotten over the last couple of years have driven the marketplace to a pretty stable place now. But it’s also attracted some new capital in the form of MGAs and MGUs, and even new carriers starting out,” Pasik said.
“There are a lot of carriers out there and a lot of capacity. We’ve got to stay aware and look at the financial stability of those carriers in total: who they have underwriting their business, how long they’ve been in business and what kind of business they are entertaining overall.”
For wholesalers, he argued, established carrier relationships and consistent underwriting provide a way to differentiate their offering as admitted insurers pursue selected business.
A similar dynamic is emerging in personal insurance, according to Marielle Charron, regional practice group leader, personal insurance at Burns & Wilcox.
“We’re seeing more competition, more capacity,” Charron said. “It doesn’t necessarily translate into broader underwriting guidelines across the board though.
“Carriers are increasingly sophisticated in how they’re evaluating exposures. Things like replacement cost accuracy, routine property maintenance and proactive loss prevention can make a very meaningful difference in the terms they’re able to obtain for their clients.”
Coastal and catastrophe-exposed properties remain important E&S risks, alongside high-value homes, unusual property characteristics, nontraditional occupancy arrangements and builders’ risks.
Read more: Pricing relief cannot disguise rising HNW exposures: PURE President
But Charron cautioned against treating an E&S placement as evidence of poor risk quality. Some accounts need greater underwriting flexibility, specialist expertise or coverage tailored beyond what an admitted insurer can provide.
As admitted capacity returns, she said, the decision requires a closer understanding of the account.
“E&S should no longer be viewed as a last resort,” Charron said. “In many cases, it may be the most appropriate solution for the exposure. The opportunity isn’t simply determining where risk can be placed; it’s understanding where it belongs.”
