By Don Jergler, Insurance Journal | April 7, 2016
If insurance is the best kept secret in the business world, then the E&S sector is the best kept secret in the insurance industry.
That’s according to Hank Watkins, president of Lloyd’s America, who talked fondly on Thursday about excess and surplus lines before a large gathering of business students and insurance executives in Southern California.
Watkins was the guest speaker at E&S Day at Cal State University Fullerton’s Center for Insurance Studies, which is part of the Mihalylo College of Business and Economics.
The Lloyd’s chief explained the industry and gave an E&S review and outlook for the benefit of students taking insurance-related courses at the school, which often hosts notable insurance executives for discussions and seminars.
Watkins explained how the E&S business insures risks that other insurers won’t, and then when the E&S sector proves those risks are insurable, or are a good business to be in, the rest of the industry moves in to offer products for those risks.
“There’s enough challenging things that come around in our world that gives the E&S sector plenty to do,” Watkins added.
He also called E&S a “surge tank” for the insurance industry, a role it plays when insurers pull out of a particular risky market and the E&S sector moves in.