The property and casualty (P&C) insurance landscape is undergoing a dramatic and sustained transformation, shaped by two powerful and interconnected trends that continue to redefine how and where profitable growth is occurring. The surplus lines market has more than tripled its share of total P&C direct premiums written since 2000, marking its shift from a niche segment serving unusual risks to a central, fast‑growing force in the industry.
At the same time, managing general agents (MGAs) are rapidly expanding their influence and premium volume. In 2024 alone, MGAs wrote $114.1 billion in direct premiums—a 16% year‑over‑year increase—far outpacing the broader market and reinforcing the momentum behind delegated underwriting authority.
Why Surplus Lines Are Rising So Quickly
Within commercial lines specifically, the shift is even more striking. Surplus lines insurers have grown their market share from 7.1% to 25.7% since 2000. This rise is not a temporary anomaly or a market‑cycle blip. It reflects a fundamental reallocation of insurance capacity toward risks that are:
- More complex
- More specialized
- Harder to place
- Emerging faster than regulatory frameworks can respond
Traditional admitted carriers may decline these risks when capacity tightens, loss volatility increases, or new exposures emerge at a pace that internal underwriting infrastructure cannot immediately absorb.
Surplus lines carriers have become the industry’s safety valve, absorbing risks that standard markets are unable—or unwilling—to support. Just as importantly, they bring the flexibility, innovation, and responsiveness required to meet today’s dynamic risk environment.
Delegated Authority and MGA Growth: A Structural Shift
This environment has fueled the rise of MGAs, whose model aligns perfectly with the need for specialized expertise and speed. 2024 marked the fourth consecutive year of double‑digit MGA premium growth, signaling a structural—not cyclical—trend.
Carriers increasingly rely on MGAs to access:
- Niche underwriting and distribution expertise
- Faster program design and refinement
- Deep vertical market knowledge
- Scalable premium expansion without building internal infrastructure
A significant migration of underwriting talent into MGA environments—combined with advanced technology platforms, strong data capabilities, and steady delegated authority flow—underscores how scalable and attractive the MGA model has become.
MGAs can adapt faster, test program iterations more efficiently, and operate with an agility that traditional structures rarely match.
Superior Performance in the E&S Market
The profitability story amplifies why this shift matters. Excess and Surplus (E&S) carriers have outperformed the standard market in recent years, reflecting both underwriting discipline and strong alignment with emerging exposures.
2023 combined ratio
- E&S carriers: 86%
- Broader P&C industry: 101%
2024 combined ratio
- E&S carriers: 88%
- Admitted market: 95%
These sustained margins demonstrate that the E&S market is not merely a destination of last resort. It’s where specialization, expertise, and underwriting rigor converge to deliver enduring performance.
How IPS Is Positioned for This Moment
It’s in this environment that Innovative Program Solutions (IPS)—launched by Holmes Murphy in 2023—has built and accelerated its platform. IPS benefits from senior leaders with deep carrier experience, including firsthand backgrounds in delegating underwriting authority to MGAs and developing delegated authority programs from the ground up.
This insider vantage point provides a clear understanding of:
- What makes MGA partnerships successful
- Where carriers face internal challenges when entering new niches
- How to build programs that align with carrier appetite and operational constraints
Since launch, IPS has successfully introduced both surplus lines and admitted programs, each created in collaboration with carrier partners who entrust our team with delegated underwriting authority.
Our mission is to design specialty insurance programs for industries that have historically been underserved or misunderstood by traditional markets. That gap between the needs of underserved markets and what capacity available is where IPS creates value.
Our Capabilities: Built for Scale and Performance
IPS brings together experienced underwriters with backgrounds spanning specialty lines, program leadership, and carrier operations. These underwriting foundations are strengthened by:
- Robust data analytics and reporting capabilities that allow us to monitor program performance in real time
- A modern technology platform that enables efficient quoting, binding, issuance, and servicing
- Strategic support from Holmes Murphy, providing expertise in compliance, actuarial services, accounting, and data security
This integrated platform ensures consistency, reduces friction, and positions IPS to scale quickly when opportunities arise.
A Balanced Approach: E&S and Admitted Solutions
Our commitment to the E&S market does not come at the expense of admitted strategies. In fact, we view both as essential components of a well‑balanced product strategy.
- E&S lines bring flexibility, customization, and speed—critical for emerging, complex, or fast‑moving risks.
- Admitted markets offer stability, predictability, and regulatory clarity.
For IPS, the goal is to design the right solution for each risk environment, aligning coverage, capacity, and underwriting rigor with market conditions and policyholder needs.
Where the Industry Is Headed
When combined with delegated underwriting authority, the advantages of E&S lines become even more pronounced. MGAs are uniquely equipped to deliver:
- Deep specialty underwriting expertise
- Agility in product design and distribution
- Scalability across diverse niches
- Rigor and transparency that carrier partners expect
These capabilities are driving the next evolution of the insurance ecosystem—and this momentum is unlikely to slow.
At IPS, we are confident that both the broader insurance industry and the MGA model are well positioned to highlight innovative, solution‑driven capabilities that benefit insureds, distribution partners, and carriers alike. As risks evolve and new challenges emerge, it is the organizations that embrace specialization, agility, and forward‑thinking collaboration that will shape the future.
IPS is proud to be part of that movement. If you’re looking for an MGA partner that believes in innovation, reach out to us today.