Dispelling doubts about the E&S market

Some highlights of A.M. Best Co.'s study of the excess and surplus lines market (E&S) are presented. Items examined include the types of companies that comprise the E&S lines market as well as its underwriting trends, regulatory issues and financial condition. The 41 E&S lines insolvencies are also examined, including impairments and rehabilitations that have occurred since 1969, and they are compared with the 573 insolvencies that have occurred in the total property/casualty industry. The E&S lines market is a $7.9 billion segment that represented only 3.1% of the entire $253.8 billion property/casualty industry in 1993. However, the role of the E&S lines market in the overall insurance market is vital.