Agents must currently make a "diligent effort" and have been rejected by at least three authorized
admitted insurers before seeking coverage from the surplus lines market for a policy.
Also, given the high catastrophe-prone risk and generally higher value of homes in these areas, a sizable portion of the coverage is provided by the Excess and Surplus market, and may work to shift losses away from traditional large
admitted insurers.
Jones said while some of these risks are being picked up by other
admitted insurers, many of these consumers are being forced to purchase coverage through the FAIR Plan, the state's insurer of last resort, or the surplus lines market.
SIG represents several
admitted insurers, all rated “Excellent” by A.M.
It's the market to which buyers can turn for additional capacity when
admitted insurers have cinched their purse strings tight.
Admitted insurers find it easier to win business by moving into traditional surplus lines areas.
Mid-Continent Group - a part of American Financial Group - consists of Mid-Continent Casualty, Mid- Continent Assurance and Oklahoma Surety, all
admitted insurers. Mid-Continent Casualty Company is licensed in 33 states, with written premium in all 50 states.
At this point, however, most
admitted insurers and even some in the surplus lines space are taking a pass.
Free trade zone policies are also written by
admitted insurers and are not insignificant.