QBE North America President Discusses Challenges in Broker-Sponsored Insurance Facilities

London assumed the role of president of specialty casualty at QBE North America. In commentary regarding the excess and surplus lines market, London noted that broker-sponsored facilities are being tested by rising claims severity and high acquisition costs. She expects continued growth in these facilities but anticipates a potential separation between those focused on long-term profitability and those driven by premium volume.

The commentary suggests that not all broker-sponsored facilities will maintain carrier support due to increasing costs. London stated that some facilities might be restructured or capacity withdrawn, which could shift business back into the traditional Excess and Surplus market and create opportunities for carriers.