Specialty insurance is equally exciting and challenging – that’s according to John Vedder (pictured), BSIB regional president – property and casualty at Bridge Specialty Group.
“It’s a dynamic, fast-paced industry filled with opportunities to innovate and solve the complex needs of our customers,” he said.
Speaking to Insurance Business, Vedder highlighted how the key to overcoming challenges is through education and collaboration.
“Disconnects in the buying cycle between an insured, retailer, wholesaler and a carrier can come from a lack of understanding,” Vedder said. “The message can easily get lost in translation if the communication is not clear. As a wholesaler, the finesse of being the intermediary and connecting each end of the transaction lies in assisting the navigation and translation of the complexities of our market.”
Wholesale brokers aren’t just intermediaries; they are problem solvers and strategic advisors.
“In the world of wholesale brokerage, every day brings new possibilities to dig in, create smart solutions, bridge gaps in understanding, and guide clients in securing the coverage they need. I see wholesale as the industry’s most dynamic space – where real solutions happen.”
An experienced broker himself, Vedder has seen first-hand the complexities of the marketplace and the importance of an educated agent and insured. “As an industry we are facing a huge challenge with the continual creep in loss costs. Recently, I had a major E&S carrier share that some of their initial loss reports from the LA fires are showing costs approaching $800 per square foot – an unprecedented figure for them – which could put many of their losses close to double the ITV for which they were underwritten.”
He sees this as an opportunity to drive even greater awareness and ensure that agents and insureds are making informed decisions. “The greater the understanding the insured has of their exposures and the placement that has been put together to address the exposures, the easier it can be for them to feel comfortable that they are properly covered at the time of a loss.”
A sophisticated yet thoughtful approach is key. Wholesale brokers are becoming even more essential in ensuring that coverage solutions are being found, and the numbers reinforce this. The US Surplus Lines Service Offices’ recent report shows that in 2024, the E&S market experienced a 12.1% increase in premium and a 9.5% rise in transactions across all lines, with property-specific premiums up 11% and transactions up 12.3%.
“While states like Florida, California, and Texas often dominate the discussion, other states like Minnesota (up 30.9%) and Washington (up 22.1%) are experiencing major growth as well. This reflects a shift in how and where specialty insurance is being utilized.”
Vedder pointed out that as more insureds transition from the admitted market to E&S, wholesalers play a crucial role in helping them understand a different approach to structuring coverage.
“This is about setting expectations,” Vedder said. “Understanding how shared limit placements work and being clear about what is available in the Market, especially for those who are used to traditional, admitted markets, is critical. We’re here to advise and help them navigate these changes.”
As the insurance landscape evolves, having the right strategy in place is more important than ever. Vedder sees this as an opportunity for wholesale brokers to bring innovative solutions to the table.
“Do we carve out specific locations, negotiate multiple deductible structures based on locations, or tap into the ever-increasing alternative capital market to provide capacity on our most challenging accounts? Experience shapes those considerations and presenting the available solutions,” he said.
“For us, it’s about defining a clear roadmap, developed with our experience and our industry relationships,” Vedder said. “The wholesale space has always been built on the ability to respond when the standard market cannot.”
For Vedder, the future of specialty insurance isn’t just about reacting to changes – it’s about staying ahead of them.
“Our success is driven by a powerful combination of data and analytics added with the expertise of our team” he said. “By staying agile, anticipating challenges, and fostering strong relationships, we can innovate and develop products that not only meet but lead market demand. We don’t just respond to the market – we are leaning into it."
Looking ahead, Vedder believes that speed, knowledge, and adaptability will be the key drivers of success in specialty insurance.
“The fundamentals of a placement may not change drastically, but our ability to accelerate the process and improve efficiency will continue to evolve,” he said. “The faster we can get to ‘yes,’ the more value we provide to our customers.”
At its core, specialty insurance is about providing solutions in an ever-changing world. With leaders like Vedder driving the way, the industry is well-positioned to meet future challenges with confidence.
