Rusty Perry, Smart Choice®
The Covid-19 pandemic has altered the way in which we look and think about so many elements of our lives, and the insurance industry is no exception. Life as we know it continues to evolve day-by-day and we must contemplate how to navigate the insurance environment moving forward with a changing marketplace.
A time prime for Excess and Specialty Markets
The circumstances of 2020 forced many carriers to tighten their reigns on risks, as we saw mass statewide shutdowns, losses, and restrictions. These tightening market conditions shifted what were once standard market risks into the E&S market. For example, carriers are now adding underwriting questions related to covid protocols to assess risk for exposure and the insured’s preparedness to meet the new standards. In some cases, carriers are implementing pandemic-related exclusions resulting in standard markets pulling back on certain market segments which is driving the transition to E&S. E&S markets have long been branded for having greater flexibility and diversity in solutions offered for hard-to-place risks, and now more agents are finding themselves in need of these unique market capabilities to help their clients find a solution that fits.
Some industries need Excess and Specialty Markets now more than ever
Construction, hospitality and transportation were some of the most highly impacted market sectors. Many construction sites were shut down for long periods of time, and shutdowns in the transportation sector complicated their return as resources and materials became scarce.
Restaurants and hotels were without customers for months as the hospitality industry took a brutal hit when conferences were cancelled and companies suspended work travel indefinitely. This impact was seen not just in the U.S., but on a global scale. These wide-reaching closures had a trickle down effect on any kind of business related to the hospitality industry including bars, meeting and party planners, entertainment providers, and even the supply providers.
Each of these segments serve vital roles in the building, serving and delivering of resources and employment to our respective communities all across the U.S. As the economy begins to re-open, the need for suitable solutions for these market segments will be high due to increased exposure risk and new covid protocols, and the E&S markets are ready to fill this need.
Stay relevant with diverse Excess and Specialty solutions
In 2020, the E&S markets saw a dramatic increase in the volume and diversity of risk classes now needing alternative solutions. With Express Markets, Smart Choice is proud to offer our 8,600+ agents a wide array of diverse solutions to the ever-changing
market conditions. With access to over 30 groups and 300+ markets nationwide, Smart Choice agents have more options to better serve their clients, retain business and grow their agencies.
The Independent Insurance Agent's Guide to Excess, Surplus and Specialty Markets
Over the last several years, the market has seen a dramatic uptick in Excess, Surplus and Specialty lines. As the standard market continues to adjust, the specialty markets will almost certainly continue to grow at a fast pace. This trend can be a highly opportunistic time for Smart Choice agency partners who have access to our Express Markets search tool in the Agency Business Center. See how this indicates a great opportunity for independent agencies in the 2021 Issue 2 of Smart Choice Magazine.