I’m thrilled to sit down with Simon Glairy, a renowned expert in insurance and Insurtech, with deep expertise in risk management and AI-driven risk assessment. With years of experience analyzing market trends and emerging opportunities in the property and casualty sector, Simon is the perfect person to help us unpack the latest data on niche property insurance lines in the US. Today, we’ll explore the dramatic growth in specialist markets like private flood and ocean marine, the dominance of fire insurance across many states, and what these trends mean for insurers and brokers navigating an ever-shifting landscape.
Can you walk us through what the Property & Casualty LOB Performance & Market Trends dashboard offers and why it’s become such a valuable tool for insurance professionals?
Absolutely. This dashboard is a game-changer for anyone in the property and casualty space. It provides detailed, state-by-state data on premium growth—both in absolute dollars and percentage increases—across various sub-lines of business from 2022 to 2024. It allows users to filter by geography, line of business, and even specific timeframes, offering a granular view of where the market is heating up. For insurers, MGAs, and brokers, it’s invaluable because it highlights not just the big premium pools, but also the niche segments with outsized percentage growth, helping them spot opportunities for market entry or product innovation that might otherwise fly under the radar.
What kind of insights does this dashboard reveal specifically about niche property insurance sub-lines?
The dashboard really shines when it comes to uncovering trends in smaller, specialist sub-lines. For instance, it tracks percentage growth in areas like private flood, ocean marine, and farmowners’ multiple peril, showing exactly where these lines are surging on a state level. It’s not just about raw numbers—it contextualizes growth relative to market size, so you can see that a sub-line like private flood, while still a small slice of overall premiums, might be exploding by triple-digit percentages in certain states. This kind of insight helps professionals understand where demand is emerging and why.
How are MGAs and brokers using this data to shape their strategies for market entry or product development?
MGAs and brokers are leveraging this data to make smarter, more targeted decisions. For example, if they see a niche line like ocean marine growing by hundreds of percent in a state like Louisiana, they might explore partnerships or new offerings tailored to that region’s specific risks, like supply chain exposures near major ports. The dashboard helps them identify these pockets of opportunity and benchmark their own growth against state leaders, so they can decide whether to double down on a sub-line or pivot to something with more momentum. It’s all about aligning their risk appetite with where the market is moving.
We’ve seen incredible percentage growth in niche lines like private flood, with Massachusetts reporting a staggering 1,221% increase. What’s fueling this kind of surge in such a specialized market?
The growth in private flood insurance, especially in a state like Massachusetts, is largely driven by gaps in the National Flood Insurance Program. Many property owners are realizing that federal coverage doesn’t fully meet their needs—whether due to limits on payouts or specific exclusions—so private carriers and MGAs are stepping in with tailored solutions. Plus, heightened awareness of climate risks, even in areas not traditionally seen as flood-prone, is pushing demand. That 1,221% jump reflects both a low starting point in 2022 and a rapid response from the market to fill an unmet need between 2022 and 2024.
Ocean marine insurance has also seen massive profit increases in states like Louisiana and Rhode Island. What factors are behind this trend?
Ocean marine’s growth in states like Louisiana and Rhode Island—up 779% and 476%, respectively—ties closely to regional economic and risk dynamics. These areas have significant exposure to maritime trade and supply chain activities, and disruptions in recent years have heightened the need for robust coverage. Carriers are also adjusting their risk appetites, seeing profitability in underwriting these policies as global trade risks evolve. It’s a combination of localized demand and broader market shifts that’s driving those impressive numbers.
Fire insurance topped growth rankings in 20 states. What’s making this sub-line such a consistent performer across so many different regions?
Fire insurance’s dominance in 20 states comes down to a universal concern—property damage from fires, whether caused by wildfires, urban incidents, or other triggers, is a risk that resonates everywhere. Climate change has amplified worries about wildfires, especially in states like Oregon, where fire growth hit 663%. But even in less obvious areas, aging infrastructure and rising property values are pushing demand for comprehensive coverage. It’s a sub-line that benefits from both broad awareness and specific, escalating risks, making it a steady leader in percentage growth across diverse geographies.
In contrast, some states like Georgia showed much slower growth, with inland marine at just 16%. What might explain these underwhelming numbers in certain markets?
Low growth in a state like Georgia for a sub-line like inland marine often reflects regional factors. Economic conditions might play a role—if there’s less construction or goods transportation activity, demand for inland marine coverage, which protects property in transit, could stagnate. Additionally, the risk profile might not be as pressing in some areas, or competition might already be saturated, leaving little room for percentage gains. It’s also possible that carriers in these states are focusing on other lines with higher perceived opportunity, slowing investment in underperforming sub-lines.
Looking at the bigger picture, the median growth across states for leading sub-lines was 113%, but the average was much higher at 188%. What does this disparity tell us about the current state of the market?
This gap between the median and the average signals a highly uneven market. The median of 113% shows that half of the states’ leading sub-lines grew at or below that rate, reflecting a solid but not explosive baseline. But the average being pulled up to 188% indicates that a handful of outliers—like Massachusetts with its 1,221% private flood growth—are skewing the overall picture. It tells us that while there’s steady growth across much of the market, the real story is in these extreme surges in niche segments, creating both opportunity and volatility for insurers and brokers.
What’s your forecast for the future of these niche property lines, especially as risks and market dynamics continue to evolve?
I think we’re going to see continued momentum in niche lines like private flood and ocean marine, especially as climate risks intensify and traditional coverage programs struggle to keep pace. However, sustainability will depend on carriers’ ability to manage volatility—those huge percentage jumps can reverse if underwriting isn’t disciplined or if major loss events hit. I expect technology, like AI-driven risk assessment, to play a bigger role in helping insurers price these risks accurately and spot emerging opportunities early. Overall, the next few years will likely reward those who can balance innovation with caution in these fast-moving, specialist markets.
