Jones said while some of these risks are being picked up by other
admitted insurers, many of these consumers are being forced to purchase coverage through the FAIR Plan, the state's insurer of last resort, or the surplus lines market.
SIG represents several
admitted insurers, all rated “Excellent” by A.
It's the market to which buyers can turn for additional capacity when
admitted insurers have cinched their purse strings tight.
Cites conditions with which a surplus lines broker seeking to procure or place nonadmitted insurance in a state for an exempt commercial purchaser must comply in order to win exemption from any state requirement to make a due diligence search to determine whether the full amount or type of insurance sought by such exempt commercial purchaser can be obtained from
admitted insurers.
Admitted insurers find it easier to win business by moving into traditional surplus lines areas.
Mid-Continent Group - a part of American Financial Group - consists of Mid-Continent Casualty, Mid- Continent Assurance and Oklahoma Surety, all
admitted insurers.
Premium typically flows from non-
admitted insurers to
admitted insurers during soft markets, so this is not surprising.
But while always looking for additional business to write,
admitted insurers are not attempting to sweep up large blocks of business from the surplus lines market, Donovan stresses.
Free trade zone policies are also written by
admitted insurers and are not insignificant.
Also, given the high catastrophe prone risk and generally higher value of homes in these areas, a sizable portion of the coverage is provided by the E&S market, and may work to shift losses away from the traditional top
admitted insurers.
As nonadmitted carriers, surplus lines insurers are free from some coverage and pricing requirements that apply to
admitted insurers.
But while looking for additional business to write,
admitted insurers are not attempting to sweep up large blocks of business from the surplus lines market, Donovan stresses.
