The excess and surplus (E&S) market has been on a remarkable run, with seven straight years of double-digit premium growth. But what will sustain that momentum in the years ahead?
Mike Miller (pictured), president and CEO of Pivix Specialty Insurance Services (Pivix) and a long-time E&S leader, believes the answer lies less in cyclical tailwinds and more in the structural advantages that have always defined the sector.
“I don’t think it’s cyclical. I think it’s structural,” Miller said. “If you look back over the past 20 years, growth in E&S has been consistent. The demand is driven by risks that need flexibility, which the standard market doesn’t provide. The E&S market is built for that.”
Miller, the former president of Scottsdale Insurance, has spent his career in the sector. Now leading Pivix, an MGA founded in 2024, he believes the E&S industry’s defining strength is its ability to adapt to shifting risks.
Miller identified three key factors that will shape E&S growth in the coming years: economic conditions, emerging risks, and a strengthening distribution channel.
“A strong US economy creates opportunities, because we insure new and growing businesses,” he told Insurance Business. “But even in slower economies, insurance remains essential. Sometimes demand even increases during downturns. Insurance is the cornerstone of economic activity—it enables people to take risks and start businesses.”
New exposures, such as those stemming from artificial intelligence, will only expand the role of E&S, Miller argued. “We don’t yet know what AI-related risks will look like, but they’re coming,” he said. “The E&S market is best positioned to adjust in real time. That ability to pivot is what has always defined this sector.”
Wholesale brokers will continue to play a vital role in the sector’s expansion. Pivix does business through wholesale producers, and Miller called them “a trusted channel” for complex risks that retail agents can’t place directly.
“They’ve been able to capitalize on the growth cycle, and they’ve built deep expertise in specialized risks,” Miller said. “They continue to adapt, and for us they’re the starting point of every transaction. We’ve built strong relationships over the years, and that’s a big part of our success.”
Even with strong tailwinds, Miller acknowledged challenges that could slow momentum. He said the biggest issue facing MGAs and wholesalers isn’t regulation or capital but talent.
“The real challenge is attracting younger people into the industry, giving them a strong foundation, and making sure we’re diversifying the workforce,” he said.
Efficiency is another priority. “When you’re dealing with distressed or challenged risks, you don’t have weeks to analyze them,” Miller said. “Speed to market is essential. Just as important is managing transaction costs. Efficient platforms reduce expenses, making coverage more affordable for insureds. Whether you’re an MGA, broker, or carrier, keeping costs down is critical.”
Pivix, a wholesale-focused MGA, is on its first year of operations and recently launched an E&S casualty program with Everspan Group. It offers primary general liability coverage for targeted classes of business, including contractors, real estate, hospitality, and manufacturing accounts.
Miller expressed confidence that the structural demand for E&S solutions will keep the market on a steady growth path. “I don’t know that we’ll stay in double digits forever,” he said. “But I do think 2025 could be close to that. The structural demand is there, and it’s not going away.”
For Miller, the formula for the next phase of growth will be about leveraging the industry’s flexibility, investing in talent, and maintaining the speed and efficiency that make E&S indispensable.
“Whether the economy is hot or cool, the need for E&S will remain strong,” he said. “The key will be how we adapt: meeting emerging risks head-on, supporting our wholesale partners, and building the next generation of talent to carry the industry forward.”
