Drastic changes have hit the insurance industry in the past few years, especially the coronavirus pandemic. While it’s been a challenge for most insurers, there have been opportunities for those skilled in excess and surplus insurance — coverage for customers that may have unappealing or hard-to-define risks or have lost their coverage elsewhere. One company that’s navigated the treacherous waters skillfully has been Kinsale Capital Group which has posted impressive growth in a difficult space.
Insurers are tightening underwriting standards, increasing their premiums, and limiting coverage options available to some customers. Many experts expect this trend to continue over the next year, which has caused some in the industry to restructure their books or cancel some programs altogether. But Kinsale’s CEO, Michael Kehoe, said his company has actually benefited. A history of conservative practices has placed Kinsale on solid footing to take advantage of the environment, which has helped drive solid profit growth and strong stock price appreciation to boot.
A treacherous insurance market is an opportunity for Kinsale
Kinsale is an excess and surplus insurance specialist, and it’s uniquely suited for this challenging time because of its discipline. As more aggressive competitors have had to reduce their risk, they’ve found themselves unable to provide certain coverage. This ultimately works to Kinsale’s benefit, as it has stepped up to fill the gap, helping grow its share of the specialty insurance market while increasing premiums, which is driving bottom-line growth.
