July 2, 2019
Marketplace Madness
With the second quarter behind us, we thought we would bring you some impressive statistics at this midway point in the year. So this week's eNews is devoted specifically to marketplace statistics.
The Florida surplus lines market is booming so far in 2019 and is setting records for the amount of premium reported to FSLSO.
Through the end of June, there has been a 14.2% increase in the amount of premium reported compared to the first half of 2018 and a 9.5% increase in policy count. The Sunshine State is on target to break an annual record of reported premium with the potential of exceeding $6.5 billion for the year.
Premium Trend and Forecast
Premium for the First Half of 2019
Record half-year premium was received in 2017, then again in 2018, and exceeded yet again in 2019.
Premium and Policy Count by Quarter
The last record for premium received in a given quarter was set last year during the second quarter, only to be topped with this year’s second quarter. May 2019 was also a record month with close to $800 million in premium reported. Premium filed during the second quarter of 2019 was almost $2.23 billion and was 17.8% greater than premium filed during the same quarter last year.
Quarterly Premium Trend
Resident vs. Non-Resident Agent Growth
While Florida resident agents continue to consistently report more premium than non-resident agents, the number of non-resident agents reporting surplus lines business is growing at a faster rate in comparison. Out of 1,115 agents that reported business during the first half of 2019, non-resident agents accounted for almost 63% of the total, but only 36% of the total premium reported.
Top Agencies by Premium
AMWINS Brokerage of Florida was ranked first for the first time ever. Normally ranked third at the half-year mark, AMWINS Brokerage of Florida has been steadily increasing in rank since 2012.
AMWINS Brokerage of Georgia has been consistently swapping places with Bass Underwriters for eighth place.
AMWINS Access Insurance Services, LLC was ranked tenth for the first time, trading place ranks with All Risks, LTD who is now ranked eleventh at the half-year mark.
Top Coverages with Top Insurers
The top five coverages have not changed much except for the occasional appearance of Collateral Protection (Force Placed Coverage). Since FSLSO's inception in 1998, Commercial Property premium filed exceeded $30 billion this year.
Lloyd’s accounts for 26.5% of the premium received this year, and also accounts for more than 26% of the Commercial Property premium received by FSLSO. Commercial Property is the only coverage that remains at the top of both lists.
Timely Premium
Congratulations! FSLSO is excited to report that a record 85.2% of all premium received by FSLSO so far in 2019 was filed timely.
As a reminder, transactions should be received within 30 days of the effective date to be considered on-time. A portion of the dips in timeliness can be attributed to the nature of certain coverages, transaction types, and corrections.
Keep up the good work!
Coverage Growth
When comparing the first six months of each year, FSLSO has seen some coverages grow at a rate above the 14.2% increase over the previous half years.
Cyber Liability, HO-5, and HO-6 are examples of coverages that have experienced both consistent and rapid growth year over year. All three coverages have experienced record half-year, quarter, and month during 2019.
New Business vs. Renewals
New Business transactions have increased in both policy count and premium while Renewal transactions only showed an increase in premium for the second quarter. The decrease in policy count for Renewals in the second quarter of 2019 is a result of a significantly higher amount of Inland Marine – Personal filings during the second quarter of 2018. By excluding the Inland Marine – Personal, it would actually show an increase in Policy Count for the second quarter of 2019.
We hope you found this interesting and useful. For more data and statistics, visit the Market Data section on fslso.com.
www.fslso.com
Have questions? Contact us at 800.562.4496, option 1 or email agent.services@fslso.com.
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