The Excess and Surplus (E&S) insurance market has achieved double-digit growth for nearly six consecutive years.1 Driven by inflation and an uptick in natural disasters, E&S accounted for nearly 9% of the total Property and Casualty (P&C) market. Historically, it makes up around 5%.
Given the dynamic nature of domestic and global markets, E&S lines offer insurers an attractive growth opportunity. But to succeed in these markets, you’ll need to have a modern policy administration system that can support your product lines and improve your agility.
That’s where Solartis comes in. Our policy administration platform, alongside our Solartis Builder toolkit, enables insurance carriers and MGAs to rapidly develop, launch, and manage new E&S products.
The rest of this article will cover
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What’s driving the impressive growth of the E&S market
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How you can use Solartis to capitalize
What’s driving E&S growth?
E&S lines make up a specialty market that covers insurance risks that the standard insurance carriers won’t accept. Sometimes, these can be higher-risk accounts, but they can also be non-traditional assets.
This relatively small portion of the insurance market is growing because the products better align with customer needs in a volatile macroeconomic environment. Here are a few characteristics of E&S products that appeal to customers during economic uncertainty:
Higher Risk Tolerance
E&S products often cover businesses or assets deemed too high-risk by other insurance lines.
Commercial real estate companies in disaster-prone areas are an example. This profile of customer has a lot of revenue potential in their market, but there’s the looming possibility of expensive claims. Traditional insurers will say no, but E&S providers will try to find a way.
Greater Flexibility
Many businesses—particularly in the hospitality and service sector— are still feeling the effects of the COVID-19 lockdowns. Their revenues aren’t where they were pre-pandemic, so they can’t afford to pay normal premiums.
By providing great payment flexibility, E&S lines can offer an alternative to businesses that need a different payment structure.
Innovative Coverage for Non-traditional Markets
New, innovative business models appear on the market every year. From crypto to cannabis to cyber security, there are many new markets amid a growth cycle that require innovative coverage options. (We call this a C-change at Solartis.)
MGAs are often working on ways to offer these organizations coverage, but E&S products can be a solution, too.
Capitalizing on E&S Insurance Opportunities with Solartis
E&S Insurance can be a growth opportunity for insurance carriers, but you need to take the right approach to realize the full potential of this market.
In today’s insurance market, that means utilizing a modern policy administration platform that includes low code configuration tools and assets that enable you to analyze and act on customer data, develop and launch products faster, and react to changes in the market with agility.
The Solartis Insure policy administration platform, alongside its supporting components, can equip your organization to meet the needs of modern insurance customers.
Connect with a Solartis expert to learn more.
Comprehensive Policy Lifecycle Support
From submission intake to policy management and beyond, our systems and services support the entire lifecycle of E&S product management.
We streamline the submission process with features like integrations with CRM systems, RPA technologies, Acord applications, and Schedule imports, as well as integration with third-party content providers to reduce keystrokes and enhance underwriting capabilities
Our policy administration system supports the full policy life cycle and accommodates all the nuisances of E&S Insurance products and their unique underwriting needs.
Each policy administration function (rate, quote, bind, issue, endorse, renew, cancel, etc.) exists as a microservice. In contrast to legacy monolithic systems, our microservice architecture translates into tangible value for E&S insurance carriers by providing a nimble, flexible, cost-effective architecture that evolves with your changing needs.
Get to market quicker
Rather than building your insurance products from scratch, you can deploy our ready-made microservices and expedite the development process using our base insurance products and low code configuration toolkit, Solartis Builder.
Build better products
Our Solartis Builder toolkit allows you to rapidly respond to customer needs and market forces. By reducing development time, you’re able to adapt more quickly to opportunities in the market.
Extend your capabilities
Our integration marketplace features over 40 content providers and systems you can incorporate into our platform that enable you to build a unique ecosystem that supports your business.
Demonstrated Results
Our portfolio spans the entire P&C insurance market space, from ISO-based commercial lines to personal lines and proprietary products. We support E&S (non-admitted and admitted) insurance products in all 50 states.
For us, it’s about more than just getting insurers on our platform; it’s about helping you succeed. And we have a track record of doing just that. Here are a few examples:
“As a startup, we’re uniquely positioned to pick the best available solutions to meet the needs of a modern organization. Solartis fits that bill by helping us streamline the underwriting process, leverage digital ISO rating content, and effectively support our underwriting decisions and data science insights to provide a truly differentiated service to our distribution partners.”
— Serania Macia, Co-founder and CEO, Joyn
“They are fast, simple, and cost-effective. Their team is an extremely reasonable group of people who care, really care, about your success. Without Solartis, I wouldn’t be projecting a 30% increase in topline growth.”
— Cameron Linder, CEO, Western Bowling Proprietors Insurance (WBPI)
From accelerating the time-to-market for new insurance products to transitioning from outdated legacy systems to accelerating topline growth, our clients have realized significant improvements in business performance.
Read more success stories here
Tailored Solutions for Today’s Challenges
Our policy administration system is not a one-size-fits-all as you get with off-the-shelf solutions. Solartis Insure is configured to how you deliver your products and who uses them.
Solartis Insure is an API-centric, cloud-based policy administration platform built on a state-of-the-art microservice architecture.
It comprises over 150+ microservices that can be used as a full policy administration platform, rating system, agent or insured portal, embedded insurance, or as individual services that can be seamlessly integrated (via APIs) with customer’s existing technology platforms.
The platform operates as a system of headless microservices, offering the flexibility to support various user interfaces and user experiences (UI/UX). Different stakeholders in the insurance process—be it carriers, MGAs, program administrators, agents, brokers, insureds, or distribution partners—can each have a tailored UI/UX, portal, or app that is specifically designed to meet their individual needs.
In addition, Solartis assigns distinct permissions for each user type, regulating their access to certain functionalities and data.
When properly implemented, headless microservices can significantly decrease maintenance work and reduce expenses. This is accomplished by having one set of underlying policy administration services that support all user types and distribution channels.
Wherever you’re at with your E&S business, we have a solution to support you.
If you need our help configuring your E&S products, we can clone our ISO-based Commercial Lines content or utilize content from our non-ISO product lines. Whatever your requirements, we can rapidly configure products that check every box for your business.
The Solartis Advantage
The combination of our microservices technology and deep understanding of the insurance industry empowers our clients to streamline their policy administration and capitalize on new growth opportunities—like E&S lines.
All signs indicate the E&S landscape will continue to evolve and grow. The insurers who move first and launch differentiated products will be able to thrive in these growing markets.
If you’re looking for an E&S solution, look no further than Solartis. Contact one of our insurance experts today and learn how our technology and services can work for your business.
Sources
1 https://www.fitchratings.com/research/insurance/second-consecutive-year-of-e-s-underwriting-profits-expected-in-2023-01-09-2023
