As property market conditions moderate following several loss-heavy, but relatively benign, catastrophe seasons, excess and surplus (E&S) brokers are confronting a new challenge: too much capacity chasing too few disciplined opportunities.
After a period marked by limited named-storm activity, fresh capital has flowed back into the market, particularly via private equity-backed MGAs. That influx has created what one specialist describes as an “overabundance of capacity” in the E&S space.
While this is good news for brokers, who may find more quoting options and potentially more competitive terms, it also raises concerns about sustainability if pricing softens too far. For Kyle Burnett (pictured), senior vice president, head of E&S property North America at Swiss Re Corporate Solutions, the antidote is E&S underwriting defined by creativity, but also by restraint.
“I think within E&S property, it's about finding creative solutions now,” Burnett said. “Discipline and creativity don’t become mutually exclusive; they’re complementary.”
Within that framework, creativity can take the form of adjusting participation sizes, strategically deploying quota shares, rethinking attachment points, or engineering more efficient risk-and-reward structures.
“Strong E&S underwriting starts with rigorous data, a clear appetite, and an honest view of severity of risk,” Burnett added. “The goal isn’t to chase premium. It’s to deploy capacity intelligently while still solving real client problems.”
And even as admitted carriers cautiously return in some segments, Burnett does not view the E&S expansion as temporary. Admitted capacity will ebb and flow, but he believes the structural drivers behind E&S growth – including secondary peril volatility, social inflation, and increasingly complex asset profiles – remain intact.
“E&S has evolved from that market of last resort into a core, intentional component of the modern insurance program. We're not just used for distressed risk; we're also there to structurally layer towers, fill coverage gaps, and respond quickly to changing exposures,” said Burnett. “It's a durable change in how commercial risk is sourced and assembled.”
One area illustrating this evolution is data center construction. The rapid expansion of AI infrastructure and cloud computing has fueled a wave of large, tech-centered builds, many of which are landing in the E&S market.
Burnett stressed that underwriting these risks requires a broader lens than traditional property damage analysis, capturing geographic exposure, supply chain concentration, and evolving technology footprints.
He also noted the long-term uncertainty around asset utility. “If you think back historically, the first computer that held a megabyte was the size of an entire room. Today you have that in the palm of your hand,” Burnett said.
“As technology advances, how much larger will warehouses be? We need to insure (data centers) properly, not just from the property standpoint, but from business income and the content that is uniquely important to these risks.”
Against this backdrop, Burnett sees partnership as the defining theme between brokers, carriers, and risk managers.
“As clients have become increasingly sophisticated and expect their insurance programs to reflect that, we're seeing greater demand for speed, transparency, and certainty of execution, along with more nuanced program design. That includes mixed E&S and admitted towers, higher retentions, and clearly defined coverage intent,” he said.
Speed to market remains critical, but Burnett emphasized that speed must be paired with stability. Dedicated underwriting teams, streamlined operations, and closer alignment with wholesalers are becoming competitive necessities.
For brokers, carrier stability is also becoming a differentiator amid the influx of newer MGAs backed by private equity capital. While those entrants have helped address gaps during the hard market, Burnett cautioned that not all capital is built to withstand the cycle.
“We want to make sure that we can continue to deliver on the overall consistency and stability that (brokers) look for,” Burnett said. “Growth for us is about managed, careful, calculated growth. promised our clients that, whether the wind blows or the ground shakes, we will be there for you tomorrow.”
