Issues & Answers Special Advertising Section
July 2020

Issues & Answers: Solutions Providers

Bryan Sanders, president, WSIA board of directors and president of Markel Specialty, said despite the current global pandemic and the related economic impacts, the wholesale, specialty and surplus lines market continues to perform well. “AM Best’s 2019 Market Segment Report on surplus lines found growth of 11.2% in surplus lines direct written premium in 2018, with surplus lines premium totaling a record $49.9 billion for the year,” he said.

Bryan Sanders

Bryan Sanders
President, WSIA Board of Directors
President of Markel Specialty

“We know that even during these trying times, increasing demand for solutions to emerging risks and product innovation will be key drivers of growth.”

At a Glance

  • A nonprofit association of insurance professionals and specialty market leaders dedicated to the wholesale distribution system.
  • Serves more than 730 member firms representing approximately 1,700 offices and tens of thousands of industry professionals.
  • Provides world-class member services including networking, education, talent development, legislative advocacy and promotion of the value of wholesale distribution.


What is the current outlook for the wholesale, specialty and surplus lines market?

The surplus lines market has more than doubled in size during the last 20 years, growing from 3.3% of the total property/casualty direct written premiums in 1998 to 7.4% at the end of 2018, and surplus lines grew as a percentage of commercial lines direct written premiums from 6.7% to 15.7% in that time. A recent report from the 15 states with surplus lines stamping offices also indicates that premium is continuing to grow, as is the number of filings with those stamping offices. Total surplus lines premium reported to those states in 2019 was $37.5 billion, which is a 19.3% increase over 2018, representing remarkable growth. 
The market is at a record level of surplus lines premium, and surplus lines carriers continue to maintain a higher proportion of secure financial ratings than the overall property/casualty market.

The COVID-19 pandemic is unprecedented. How are WSIA member wholesale brokers and carriers adapting and accommodating insureds in response to the current crisis?

Wholesale, specialty and surplus lines insurers and wholesale brokers are solutions providers, and while this current global health crisis is unlike anything we’ve ever seen as an industry, we’re working through this just like we would any other catastrophic event to try and achieve good outcomes for insureds. We are focused on maintaining good communication and providing uninterrupted service. Since the pandemic began, each state has issued its own regulatory and legislative guidance, much of which has been aimed at providing relief to insureds who are managing through the distress of COVID-19, which call for various policyholder accommodations and grace periods. We’re committed to working with insureds and help them manage through COVID-19 impacts.

What do you view as opportunities for the surplus lines market moving forward?

We have opportunities to leverage emerging artificial intelligence technology and insurtech to enhance efficiency and accuracy in developing and distributing specialty insurance solutions. We have opportunities to continue to promote and deliver on the value of wholesale distribution. Wholesale brokers are experts in customizing insurance solutions that best meet the unique needs of the insurance buyer, which will be increasingly critical in coming months and years. We also have a growing opportunity to educate regulators and lawmakers on the critical role of the wholesale, specialty and surplus lines market to protect consumers, support economic development and insure the riskiest assets and operations for individuals and businesses.