Markel: E&S market provides opportunity to address global challenges

The E&S market presents an opportunity for participants to “be a solution provider for all the challenges that we have in the world today”, Markel’s chief wholesale officer Wendy Houser has said.

“You see it from everything from cyber to property to all kinds of different risk in the casualty space,” Houser said.

“But I think it's really incredible what the E&S market does for the world to provide those solutions.”

Houser described market conditions in the E&S space as “fast and furious”, driven by unprecedented growth in recent years.

She cited a recent AM Best report which showed that surplus lines direct premiums grew by 17.4 percent in 2023 to $115bn, exceeding the $100bn mark for the first time.

“It's been an incredible market. If you look at the most recent AM Best survey, it’s up 17 percent in 2023. We are certainly trying to leverage that at Markel and be more intentional. We have dedicated staff, both underwriting and leadership, to the wholesale channel. So, it's been a great ride so far,” she said.

Houser, who was speaking to The Insurer TV during the WSIA Annual Marketplace in San Diego last month, took charge of Markel’s 400-plus strong E&S team in October 2023 as the insurer dedicated itself to dual distribution.

Re-underwriting the portfolio

Houser said Markel’s strategy in the wholesale distribution space revolves around “people, product and execution”.

“We keep bringing on additional talent in the underwriting space, and that makes us stronger,” she said.

On product development, Houser cited the firm’s Markel’s Best initiative, designed to improve engagement with brokers.

“Then finally execution, which is the technology [and] the data. And we're continuing to invest in that all to be more committed to wholesale,” Houser added.

In August, Markel said re-underwriting actions in certain areas of its casualty and professional liability portfolios prompted the firm to let go of around 20 percent of premium in these classes.

During the interview, Houser said Markel is “not an outlier” and that other firms had faced the same challenges.

“Markel has always been an underwriting company, and we put a lot of stock in that so we will tweak as we need to do.

“We've been around for 100 years, we intend to be around for [another] 100 or more, but we will always be looking at our portfolio to make sure that we maintain the health [of the portfolio] so we can continue to be in the marketplace.”

Watch the full interview to hear more about: