Conning: U.S. E&S Market Achieves 21% Compound Growth Over the Past Five Years, Surpassing $104 Billion in Premiums in 2023

Significant shift toward customized insurance solutions fuels resilience and profitability amid evolving market dynamics

HARTFORD, Conn., Jan. 3, 2025 /PRNewswire/ -- The Excess and Surplus (E&S) 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. This sustained expansion underscores the market's resilience and adaptability, as it continues to outperform the admitted market by addressing complex, nonstandard risks that traditional insurers often reject.

"The E&S insurance market continues to exemplify resilience and innovation, navigating both cyclical and structural challenges with agility," said Lauryn Kothavale, a Vice President of Insurance Research at Conning. "Looking ahead, the growing demand for tailored coverage solutions highlights the sector's indispensable role in mitigating complex and evolving risks."

The surge in demand for innovative and tailored insurance solutions has been a key driver of the E&S market's growth. Since 2017, a wave of new entrants has reinforced the sector's capacity to meet these challenges, demonstrating robust demand for its offerings. The market's ability to deliver bespoke coverage aligns perfectly with current trends, as policyholders increasingly seek customized solutions to address evolving risks.

While the E&S market's growth has been impressive, it has not been without challenges. From 2017 to 2023, increased catastrophe activity and rising settlement costs have posed significant hurdles, leading to heightened liability claims and volatility in underwriting performance. However, the sector's innovative approach and flexibility in addressing these challenges have allowed it to maintain its pivotal role in the broader insurance landscape.

Looking to the future, the E&S market is poised to maintain its upward trajectory. Flexible regulatory frameworks, combined with advances in technology such as artificial intelligence, are enabling insurers to develop more precise risk assessments and policy solutions. This technological evolution, coupled with the growing demand for bespoke insurance products, is expected to foster continued innovation and market resilience.

The Conning study, "E&S Insurance: New Challenges, New Solutions," provides a comprehensive analysis of the E&S market, covering its key participants, recent performance, distribution dynamics, growth opportunities, and future outlook.

"E&S Insurance: New Challenges, New Solutions" is available for purchase from Conning by calling (888) 707-1177 or by visiting here.

ABOUT CONNING
With a long history of serving the insurance industry, Conning (www.conning.com) supports institutional investors, including insurers and pension plans, with investment solutions, risk modeling software, and industry research. Founded in 1912, Conning has investment centers in Asia, Europe and North America. Conning is part of the Generali Investments platform, which has approximately $740B in assets under management.

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SOURCE Conning, Inc.