Insurance Syndicates Facilitate Surplus Line Policies

Insurance Syndicates Facilitate Surplus Line Policies

Holding a BS in economics from St. Lawrence University, James Giacin is an investment professional in St. Louis who brings over 20 years of experience to his role as managing director of a financial firm. St. Louis resident James Giacin spearheads the firm’s strategic endeavors to provide tailored structured finance and asset management solutions to insurance companies.

According to inscipher.com, insurance syndicates write roughly 20 percent of surplus line premiums. An insurance syndicate is a group of insurance providers that jointly underwrite a set of high-risk insurance products. Structured line premiums are charged for providing coverage for large risks that are not typically covered under insurance products by admitted insurers – insurance companies that are licensed to underwrite insurance in certain jurisdictions. Admitted insurers don’t offer surplus lines insurance due to the excessively large potential liability associated with these products.

Non-admitted insurers typically underwrite surplus line policies through licensed entities called surplus lines brokers or agents. The rules governing most surplus line placements are different from those of traditional insurance. Some surplus line policies can be renewed, while others are based on one-off purchases.

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March 05, 2024 at 02:42PM