The insurance market is shifting. Traditional carriers are tightening appetites, exiting certain geographies, or imposing stricter underwriting rules. That presents both a threat and an opportunity for independent agents. One of the clearest growth vectors is the Excess & Surplus (E&S) / specialty lines space. Agents who build or expand capability in those markets may capture the “hard to place” risks that many carriers are walking away from.
Why E&S Matters Now
- Carrier retrenchment & market exits
– Many standard carriers are pulling back from higher-risk territories, especially amid climate risk and rising losses.
– That leaves gaps in coverage for properties in wildfire zones, flood zones, coastal exposures, or unique liability risks. - Growing flexibility and creativity in underwriting
E&S markets are built to accept higher volatility, tailor policy terms, and be more creative than admitted insurers - Competitive differentiation for agents
Many smaller agencies still shy away from E&S because of perceived complexity. Becoming proficient in E&S can set an agency apart, attract more referrals, and give leverage with clients who have challenging exposures.
Key Steps for Agents to Break Into (or Expand) E&S
| Step | What to Do | Why It’s Important |
| Partner Wisely | Work closely with wholesalers and managing general agents (MGAs) who specialize in E&S | They bring underwriting expertise and advocate for your submissions |
| Invest in education | Train your team on E&S vocabulary, submission requirements, and documentation best practices | Avoid rejected submissions and build credibility with underwriters |
| Build internal workflows | Create streamlined checklists, documentation standards, and submission templates tailored to E&S | Efficiency matters more when margin for error is smaller |
| Use market data | Monitor which sub-lines are growing fastest (e.g. cyber, specialty liability, property in high-risk zones) | Direct your efforts toward lines with tailwinds |
| Communicate to clients | Educate clients proactively about “coverage gaps” and the value you bring sourcing specialty solutions | Helps position agents as trusted advisors rather than mere policy sellers |
Challenges & Mitigation
- Underwriting volatility and margin pressure
E&S is riskier. Mitigation: diversify across lines, don’t overconcentrate, and maintain strong loss control protocols. - Slower response times / more back-and-forth
Some E&S submissions require more negotiation. Mitigation: clear documentation, good relationships with carriers, and patience. - Regulatory or compliance complexity
E&S markets sometimes require extra disclosures or filings. Mitigation: stay educated, lean on compliance partners or third-party services.
The Opportunity for Agents United Members
As a network, Agents United can play a pivotal role in helping member agencies ramp into E&S:
- Pool educational resources or host E&S training sessions
- Negotiate or endorse select wholesaler/MGA relationships for the network
- Provide tools (checklists, submission templates, underwriting cheat sheets)
- Foster a peer-forum where agents can share successes, challenges, and carrier contacts
By making E&S accessible, Agents United can help its affiliate agents scale faster, reduce dependence on highly competitive standard lines, and capture market share in undeserved segments.
E&S is not a fad — for many agencies, it will become a core pillar of growth in this tightening insurance climate. Independent agents who develop competence and relationships in specialty markets will be better positioned to serve clients with complex needs—and to thrive when traditional carriers pull back.
