The excess and surplus lines market continued to grow in 2024, with premium reaching more than $81 billion, according to annual reports from 15 state stamping offices released by the Wholesale & Specialty Insurance Association (WSIA).

2024 premiums reflected a 12.1 percent increase over 2023, when premiums grew 14.6 percent over the prior year to about $72.7 billion. The last two years follow the record-breaking numbers of 2022 when premiums grew more than 24 percent to $63 billion.

Stamping office states accounted for 63 percent of U.S. surplus lines premium in 2024.

Transactions were up 9.5 percent to nearly 7 million in 2024. Commercial liability and commercial property remain dominant lines of business in the E&S market. Premiums in these lines each increased about 11 percent to about $30.2 billion and $26.9 billion, respectively, in 2023. The two lines of business represent about 70 percent of total surplus lines premium from the reporting offices.

Auto liability and personal property had the highest upticks in E&S premium growth – 61.1 percent and 31.8 percent, respectively. The report also breaks down data by state, revealing where risk is flowing to the E&S market. For instance, personal property transactions increased the most in Texas (63.3%) and California (60.9 percent).

Ben McKay, CEO and executive director of the Surplus Lines Association of California, said the state saw a 124 percent increase in transaction filings within the residential lines of business, “underscoring the continued dislocation in admitted markets.” Still, residential insurance policies account for less than 7 percent of the overall surplus lines market in the Golden State.

Although some states have reported increases in personal lines, these coverages represented a small portion – just 4.9 percent – of the overall E&S market.

“Liability lines, including general liability, excess, cyber, and commercial auto, remain a significant driver of our market,” McKay said. “In particular, commercial auto premiums have surged 162% year-over-year.”

In Florida, there was a slowdown in surplus lines growth as the year progressed, according to Mark Shealy, executive director of Florida Surplus Lines Service Office.

“Notably, commercial property saw a 3 percent increase in premium volume for November compared to 2023, though growth within the quarter showed signs of slowing,” Shealy added. “However, policy counts continued to rise, suggesting a stabilizing market.”

This article was previously published by Insurance Journal. Reporter Chad Hemenway is the national editor of Insurance Journal.