Reported Surplus Lines Premium Breaking Records in Texas This Year

Surplus lines premium in Texas has consistently broken records each month in 2019, according to data recorded by the Surplus Lines Stamping Office of Texas (SLTX).

For the first five months of this year, each recorded total has been the highest premium amount ever reported for that particular month.

In May 2019, $681.56 million in premium was reported in Texas, a marginal increase over the $680.61 million recorded in May 2018, bringing the year-to-date total to $2.78 billion. This represents a 13.0% increase over 2018’s total of $2.46 billion from this time.

Filings have also increased. A total of 457,141 filings have been recorded so far in 2019, a 5.8% increase over the 431,987 recorded for the first five months of 2018.

For the month, SLTX saw a 3.8% increase in filings, from 93,760 in May 2018 to 97,289 in May 2019.

Two pieces of legislation impacting the surplus lines insurance industry in Texas have been passed by state lawmakers and sent to the governor’s desk, according to SLTX.

Both HB 1306 and HB 1940 support the expansion of surplus lines insurance coverage for flood, hail and wind.

HB 1306 will create a diligent effort exemption for flood insurance coverage for eligible surplus lines insurers who have a financial strength rating of A- or better from the A.M. Best Company, according to the stamping office.

HB 1940 states that available coverage from the Texas Windstorm Insurance Association (TWIA) does not preclude an eligible surplus lines insurer from providing windstorm and hail insurance.