During its 2025 Annual Meeting, the Surplus Line Association of California (SLA) homed in on developments in the excess and surplus (E&S) market, with industry leaders also gathering to discuss key trends, including the expansion of surplus lines homeowners’ insurance amid changes in California’s property insurance landscape.
SLA data scientist Mikhail Gorshunov (pictured above) presented data showing that surplus lines homeowners’ insurance is no longer limited to high-risk or high-value properties.
With admitted carriers withdrawing from the market, surplus lines have increasingly become a mainstream coverage solution.
Analysis presented at the meeting also showed that major metropolitan areas have seen significant growth in surplus lines homeowners’ policies. Bakersfield reported an increase of more than 2,500%, while San Jose experienced a rise of over 1,500%.
Fire-prone areas remain a focus, with surplus lines providing coverage for homeowners unable to secure policies in wildfire-exposed regions. The trend is expected to continue into 2025, reinforcing surplus lines' role in maintaining insurance availability in the state.
This trend is also not regional; a recent report from the US Surplus Lines Service and Stamping Offices revealed that surplus lines premium in the country surpassed $81 billion in 2024, reflecting a 12.1% increase from the previous year.
Premium-bearing items also grew by 9.5%, nearing 7 million transactions. This follows 2023’s $72.7 billion total premium, which marked a 14.6% year-over-year increase.
SLA CEO and executive director Benjamin McKay noted that as challenges persist in the admitted market, surplus lines have acted as a "pressure valve", offering homeowners alternative solutions and easing strain on both the admitted market and the FAIR Plan.
During the SLA meeting, surplus lines brokers licensed in California also approved the 2025 board of directors slate, adding John Fosdick and Charles Ford as new board members.
The 2025 SLA board of directors now includes:
Additional board members include Kristopher Bauer (Jencap Specialty), James Faley (Vela Insurance Services LLC), Charles Ford (Sompo), John Fosdick (CRC Insurance Services), Robert Gilbert (Markel West Insurance Services), Jon Larson (ACE Westchester), Terri Moran (Paul Hanson Partners), Pam Quilici (Ryan Specialty Group), and Charles Rosson (EPIC).
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