Issues & Answers Special Advertising Section:
February 2021

Issues & Answers: WSIA Members Deliver Value

WSIA President Bryan Sanders said member firms meet specific criteria to be eligible for membership and are proven experts in their field. “Members are also able to participate in industry networking and education opportunities that help them stay on the cutting edge of their field and develop strong relationships with trading partners that benefit the insured,” he said.

Bryan Sanders

Bryan Sanders
WSIA President
Markel Specialty President

“We continue to see the strong economy, increasing demand for solutions to emerging risks, and product innovation as key drivers of growth.”

At a Glance

A nonprofit association of insurance professionals and specialty market leaders dedicated to the wholesale distribution system.
Serves more than 730 member firms representing approximately 1,700 offices and tens of thousands of industry professionals.
Provides world-class member services including networking, education, talent development, legislative advocacy and promotion of the value of wholesale distribution.

What is the Wholesale & Specialty Insurance Association, and who are its members?

WSIA is the only trade association that serves the entirety of the wholesale, specialty and surplus lines insurance industry, with domestic and international wholesalers, wholesale-dedicated insurance markets and service provider members comprising the U.S. wholesale insurance distribution system. The wholesale distribution system delivers tremendous value to retail agents, insurance buyers and consumers. WSIA members are technical experts and specialists in creating innovative solutions for complex risks.

How do WSIA members help agents meet their clients’ needs?

Retail agents and insureds can look to WSIA-member wholesale brokers for access to markets, coverages and options they might not be able to find in the standard market. The wholesale broker’s expertise can help agents and their clients identify the right coverage in the right market. It’s also important for agents and insureds to know that there is no cost associated with seeking a wholesale quote, so it’s risk-free. A 2016 Conning Inc. analysis concluded that wholesale distribution does not increase the cost of the transaction to the insured, which makes consulting a wholesale expert a common sense approach for insurance buyers.

What is the outlook for the wholesale market and WSIA members?

The wholesale, specialty and surplus lines market is at a record level of surplus lines premium, and surplus lines carriers continue to maintain a higher proportion of secure financial ratings than the overall property/casualty market. The 2020 Best’s Market Segment Report, U.S. Surplus Lines, found growth of 12.8% in surplus lines direct written premium in 2019, with surplus lines premium totaling a record $56.3 billion and no financial impairments in the surplus lines segment during 2019, in contrast to 13 admitted property/casualty company impairments during the year.

A recent report from the 15 states with surplus lines stamping offices also indicates that premium is continuing to grow. Total surplus lines premium reported to those states in the first half of 2020 was $19.7 billion, which is a 10.3% increase over the prior year.

The surplus lines market has more than doubled in size during the past 20 years, growing from 3.6% of the total property/casualty direct written premium in 2000 to 7.8% at the end of 2019, and surplus lines grew as a percentage of commercial lines direct written premium from 7.1% to 16.2% in that time. I think this demonstrates that the market serves a critical role in the insurance industry and overall economy, and these figures demonstrate the financial strength and operating performance of market.