Annual solvency study released

The solvency record of thedomestic surplus lines industry continues to mirror that of the total property/casualty industry, according to a recent study by the A.M. Best Company.

The Annual Review of the Excess & Surplus Lines Industry was released at the 2000 NAPSLO Annual Convention.

Since 1971, surplus lines company insolvency rates have mirrored that of traditional insurers, with an average annual failure frequency rate of 0.80 percent, according to the A.M. Best study.

Best said the similarity of failure frequency rates between the non-admitted and admitted markets attests to the pricing discipline of the surplus lines market.

The median Best’s Rating for the domestic professional surplus lines writers continues to be "A" (Excellent) in 1999, which compares favorably to the standard market, which registered a median rating of "A-" (Excellent).