Surpluses and surplus lines are expected to have a strong year 2021 after a challenging year 2020, Fitch Ratings Inc. said in a report on Tuesday. , which reports a combined ratio of 107% compared to the results from 2019, the report says.
But with the exception of severe disaster losses, the sector's insurance performance is expected to improve significantly in 2021, with successive rounds of renewal increases and tighter insurance terms moderately offset by higher waived reinsurance costs, says the US surplus and surplus land.
"Performance changes in E&S should exceed standard P / C market improvements over the next two to three years," the report said.
The report said that the E&S market grew last year to almost 7% of the total US real estate / non-life insurance industry, which is comparable to its share of about 5% over the past decade, as recognized markets continued to throw unprofitable, volatile business .