Specialty Insurance and E&S Lines Surge in Q1 2024: MarshBerry Report

In Q1 2024, the specialty insurance and excess and surplus (E&S) lines market has exhibited robust growth, driven by several factors, according to a recent MarshBerry Waypoint report on US macroeconomic indicators. The ongoing elongated hardening cycle, lasting over 5 years, and the shift of premiums from admitted markets to E&S markets have significantly contributed to this trend. New product developments, such as cyber and cannabis insurance, along with increased catastrophe events, social inflation, nuclear verdicts, and higher claims costs, have further bolstered this expansion, the report found.

Specialty premiums have grown to represent a significant portion of the total property and casualty (P&C) market. MarshBerry estimates that specialty distributors accounted for approximately $180 billion of premium written in 2023, with specialty premium as a percentage of the overall P&C market nearly doubling over the last decade to an estimated 19 percent in 2023. This growth is expected to continue, with Q1 2024 premiums in key states like California, Florida, and Texas showing significant increases.

Ryan Specialty Holdings and W.R. Berkley Corporation both reported strong performance in the E&S market, particularly in casualty or liability lines, indicating sustained momentum and growth potential, the report said.