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Excess and surplus lines experts expect to see steady premium growth in 2006, with commercial property and contractors business leading the way, according to an exclusive ¾ÅÉ« survey.

Nearly 85% of survey respondents anticipate that their firm’s premium volume will grow in 2006, while only 5% expect it to decline; another 10% say their premium volume is likely to stay the same in 2006 compared to 2005.

A bare majority of brokers and wholesalers (44%) remain “very optimistic” about the stability of the E&S industry in 2006, while another 43% remain “optimistic.” Only 5% reported they feel either “pessimistic” or “not very pessimistic.”

Across the lines
Most brokers surveyed expect growth in commercial property (75%), general commercial liability (74%) and contractors (71%) over other E&S lines. Among those surveyed, more than two-thirds expect business growth in errors and omissions (69%); product liability (65%); non-medical professional liability (63%); employment practices liability (62%); transportation (63%); and commercial auto (62%) in 2006.

Just more than half of all respondents feel there will be growth in directors and officers (57%); architects and engineers (52%) and restaurant (51%) lines this year.

There is less optimism in some other lines. Less than half (49%) forecast growth in medical professional liability. Some cite coastal property (46%), health care industry (48%) and technology (48%) as growth areas. However, another 46% of respondents felt technology products would stay the same as last year.

Most respondents felt the following product lines would also stay the same as last year: residential property (51%), environmental (56%), workers’ compensation (49%), marine (65%), health care industry (48%), nonprofits (49%), farm and ranch (72%), oil and gas (52%), public entity (73%), financial institutions (73%) and sports and leisure (63%).

Nearly a quarter (23%) of respondents said their firms had total property/casualty premium volume in 2005 of $26 million to $50 million, and another 22% were from firms with total P/C premium volume of $11 million to $25 million.

More than 100 E&S brokers and wholesale firms replied to ¾ÅÉ«’s online E&S Snapshot Survey in February 2006.

Topics Trends Excess Surplus Property