Excess and surplus (E&S) insurance has moved from being a last-resort option to a core part of personal insurance for high-net-worth (HNW) and ultra-high-net-worth (UHNW) individuals. Specialists from Brown & Brown, including Caitlin Rascelles and Jeff Clinkscales, explain that E&S now plays a key role in how brokers build insurance plans, especially in regions prone to natural disasters or where clients need large coverage limits.
In the western United States, it’s rare to find a detailed insurance account that doesn’t include some E&S coverage. Clinkscales, who leads Private Client Services for the West Region at Risk Strategies (a Brown & Brown company), notes that admitted insurance markets are struggling to keep up with demand. Because of tighter standards and less capacity from traditional insurers, E&S markets offer much-needed flexibility and options.
Rascelles, Brown & Brown’s national personal lines leader, says HNW insurance providers have invested a lot in E&S underwriting and see it as a lasting part of their offerings. For clients, E&S can provide freedom to keep unique features on their homes, like wood shake roofs, that standard insurers might not accept. It also gives clients a chance to balance risk mitigation efforts against coverage needs and pricing, often offering a way for those unwilling or unable to meet strict insurer requirements to secure protection.
The rise of E&S insurance is closely tied to recent challenges in property insurance, especially with wildfire risk in the West. Underwriters are asking more detailed questions and being very careful about where they commit coverage. But catastrophe risks now extend beyond traditional areas, affecting parts of the central United States with severe storms and weather losses. Despite the scrutiny, insurers are slowly returning to growth in less risky regions like the Southeast, where competition is picking up. To get the best rates, clients must show strong risk controls such as hardened roofs and proactive property management. Brokers have had to step up their efforts to gather detailed information before presenting cases to insurers.
The changes aren’t confined to property insurance. Liability coverage, including umbrella and excess policies, faces pressure from large legal claims and litigation funding. UHNW clients often rely on multi-layered umbrella programs that include surplus lines to reach the high limits they need. Insurers want to understand their clients’ lifestyles and risk management efforts before offering coverage, making clear communication between brokers and underwriters essential.
Both Rascelles and Clinkscales believe these shifts are permanent. They agree that the demand for coverage exceeds what admitted carriers can supply quickly or profitably. Clients are also more comfortable with E&S insurance than in past cycles, as long as brokers carefully assess financial strength and claims service of carriers. Today, surplus lines are seen as a smart and necessary part of managing risk for wealthy individuals and family offices.