ACORD, a nonprofit organisation that develops standards for the insurance industry, has released a new study titled US Specialty Commercial Insurance Market: The Keys to High Performance, which finds that 65% of Excess & Surplus (E&S) writers and 84% of admitted specialty insurers included in the study achieved superior performance.
ACORD identified the highest-performing specialty commercial insurers using financial data drawn from statutory regulatory filings.
The report highlights how these carriers achieve profitability through both underwriting and investment strategies, maintaining combined and operating ratios below 100.
The study examined 194 professional surplus writers and the 50 largest admitted specialty writers, representing a substantial share of the market premium—73% of E&S and 84% of admitted specialty—demonstrating that specialty insurers have consistently delivered strong results over the past decade.
According to ACORD, the most successful E&S insurers approach the market either by leveraging economies of scale and scope or by targeting highly focused niche markets.
These carriers operate through decentralised structures that empower local knowledge and authority, supported by advanced technology and organisational capabilities, which are reflected in lower acquisition and general insurance expenses.
ACORD notes that underwriting discipline is central to high performance, with top performers maintaining consistently low pure loss and loss adjustment expenses. Successful insurers also cultivate extensive producer networks, including wholesalers, MGAs, independent agents, and small brokers, emphasising accountability and long-term relationships.
Many focus on small and medium-sized enterprises and professional services firms in regional or single-state markets, prioritising products such as D&O, E&O, fidelity, and surety, while maintaining strong positions in high-value areas like cyber, environmental, and marine coverage.
ACORD’s study also underscores the challenges specialty insurers must navigate to maintain high performance. Specialty risks often lack sufficient historical data, requiring expert judgment and limiting scalability. Data fragmentation remains a barrier, as manual processes and unstructured information, combined with inconsistent standards across brokers, carriers, and reinsurers, restrict analytics and interoperability.
Specialty markets are highly cyclical, with pricing, capacity, and risk appetite influenced by macroeconomic shifts and catastrophic events.
The study highlights talent shortages, noting the difficulty in attracting and retaining underwriters and claims professionals with deep domain knowledge. Technology gaps further complicate operations, as many carriers lack modern, data-driven platforms, while competitive pressures from new entrants leveraging advanced technology continue to challenge incumbents.
ACORD emphasises that specialty commercial insurance, led by growth in the E&S market, now represents 45% of total US commercial property and casualty direct premiums written.
This segment, which includes admitted and non-admitted carriers, Lloyd’s syndicates, and other underwriting organisations, provides coverage for unique and hard-to-place exposures and relies on both retail and wholesale distribution channels.
The ACORD study concludes that sustained high performance in this dynamic sector depends on a combination of strategic focus, operational discipline, and advanced capabilities that enable carriers to remain competitive in a complex and evolving market.
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