US surplus lines grew 14.6% in ’23; Florida property leads gains

Surplus lines premium in major US jurisdictions rose 14.6% in 2023 to $72.7 billion, including 32% growth in property, a dataset from 15 US stamping offices compiled by the insurance industry lobby group WSIA indicated

Non-professional liability remains the single largest surplus line across the 15 jurisdictions, up 9.9% in 2023 to $24.4 billion. 

That rise was driven by a 20.5% gain in the nation's second largest market of Texas, buttressed by a 9.8% gain in the #3 market of New York, all sufficient to overcome a fractional decline in the single largest market, California, and a 2.9% decline in Illinois. 

Surplus property is the second largest surplus line at a third of the total sampled market. The 32% aggregate gain was led by 41.7% growth in premium in Florida to $5.06 billion, the single largest E&S property jurisdiction amongst reporting stamping offices.

“We continue to see the commercial property market’s premiums exhibit a noteworthy surge in response to current market conditions,” Mark Shealy, executive director of the Florida Surplus Lines Service Office, commented. “This uptrend is attributed to the hardening of prices, as well as a decrease in policy counts.” 

California, the only other jurisdiction with E&S property above $1 billion, tempered the aggregate growth with an 18.5% gain in premium in surplus property. 

Surplus professional liability, the third largest surplus line, declined 5.1% with growth across a smattering of jurisdictions failing to offset the massive 17.7% decline in surplus premium in California. 

Auto physical damage, still a tiny 2% fraction of the overall surplus lines, came through with heady growth of 24.1% overall on the back of 50% growth from California. 

California, on the back of the notable decline in the mentioned surplus liability lines, ended 2023 as the slowest growing surplus line jurisdiction, with premium up by only 2.8%. 

“Overall premiums increased by just under 3% and transactions by just under 5%, which is a good rate of growth and only looks small against the double-digit increases we saw in the years immediately prior to 2023,” Ben McKay, CEO and executive director of the Surplus Line Association of California, said. 

Florida, where the above-mentioned property dominates surplus business, ended up leading the market with nearly 28% premium growth. 

Premium put through the nation’s 15 stamping offices accounted for some 64% of the nation’s total surplus lines premium in 2022.

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