Insurance
Home›Insurance›Industry & Deals›Excess and surplus insurers gain ground as admitted ca…
Excess and surplus insurers gain ground as admitted carriers retreat
AM Best data shows the excess and surplus market expanded in the first nine months of 2025, and 2026 growth is expected to continue as pricing and data constraints push more risk into E&S.
Excess and surplus insurance capacity grew through the first nine months of 2025, according to AM Best, even as premium growth softened in some risk classes due to increased competition. The trend has carried into 2026 as admitted carriers continue to step back from placements they say they cannot confidently price, Insurance Business reports.
Industry experts point to severe weather, cyber exposure, and newer technologies, including artificial intelligence, as pressures driving standard insurers to reduce underwriting in higher risk submissions. Insurance Business also highlights that much of the shift is tied to data, with admitted carriers stepping away where they lack credible historical loss information, face rising claims volatility, or encounter regulatory limits on pricing.
Surplus lines are absorbing the difference as E&S insurers take on business that is harder to underwrite using traditional loss histories. Brown & Brown, via its 2026 Market Trends Report, says inflation, reinsurance costs, and severe weather remain key pricing drivers behind E&S growth this year.
The market is still offering capacity, but it is becoming more selective, particularly for wildfire prone geographies, coastal hurricane zones, and properties with higher flood exposure. Brown & Brown also warns that customers should expect a more rigorous review of property conditions, mitigation efforts, and portfolio complexity when structuring E&S programs, Insurance Business adds.