Why E&S Still Matters in a Soft Market

So, you heard we're entering a soft market, meaning more admitted carriers (those backed by state guaranty funds) are becoming more competitive, writing those commercial packages they would have declined last year—fantastic! But you’re still seeing your commercial accounts decline. What gives?

You're not imagining things. Despite a broad market shift toward softening in 2025, there are still plenty of accounts being kicked to Excess & Surplus (E&S). Why is this happening, and how should you approach this changing landscape as we begin to close our books for the quarter and toast to the new year? Let's dive into it.

A Little History

To say the Property & Casualty (P&C) market has been hard the past couple of years would be an understatement. Starting in 2018 with social inflation and nuclear verdicts (award settlements $10M+) and increasing in 2021 to larger catastrophe losses, such as Hurricane Ida (leading to over $36 billion in damages (Smith, 2024)), the P&C industry has been rocky for general liability and property.

After a record-breaking 2024, which saw 28 separate billion-dollar disasters (Munich RE, 2024), reinsurance finally stabilized this year, leading more admitted carriers to take on standard property accounts. Insurance agents began to see standard property rates decrease up to 9% in Q3 (Marsh, 2025) and are finding more options. However, there's nuance to all things insurance.

Commercial Insurance Today

The admitted markets' appetite hasn't 100% bounced back across the board. While small properties are finding coverage in the standard market, storm-prone states like Texas and Louisiana are still having difficulty finding suitable property coverage limits with wind and hail. Admitted markets often continue to limit capacity and raise deductibles for accounts that have experienced large or multiple weather-related or man-made catastrophe losses, making E&S markets the primary solution.

General liability (GL) continues to flow into the E&S market because admitted carriers remain cautious—especially with respect to volatile risks. Older habitational properties, large venues, and accounts with high limits, complex exposures, or prior losses (like construction or distressed sectors) are still hard to place in the standard market. With ongoing economic uncertainty and rising social and political pressures, admitted markets are pulling back even further on anything deemed “high-risk.” For these accounts, E&S remains the most reliable avenue.

An Admitted-Like E&S Experience—with Pathpoint

Let's face it—most agents wince when they hear "E&S." Historically, it's meant delays, confusing processes, tedious paperwork, and extra compliance steps. But Pathpoint changes that. We understand that agents need one place to go when an account requires E&S coverage, without worrying about submitting to a binding or brokerage market and the steps that both traditionally require. We provide one straightforward experience from start to finish.

Agents don’t need to decide if a submission fits into small business binding or brokerage—just submit like you would to any wholesaler. Pathpoint automatically routes your risk to the right market and delivers bindable quotes fast, mirroring the ease of admitted markets. With just one digital submission, agents can quote and bind in minutes. AI-powered tools guide coverage selection, provide appropriate class codes, prefill applications, and flag out-of-appetite risks—so you don't waste time chasing dead ends, especially on hard-to-place property and GL accounts. Lindsey Burton, Head of Underwriting and Director of the Texas Surplus Lines Association (TLSA), explains:

“General Liability in the E&S space is where the market discipline really shows. We win when we understand how to balance pricing/rates, coverages, and speed — We partner with carriers who know how to quote casualty submissions in a hard or soft market.”

In addition to market discipline, we also handle state filings and surplus lines taxes. So as long as you're P&C licensed, you're good to instantly quote business across eight verticals, including contractors, lessor's risk, vacant property, restaurants, and retailers—with access to 21 AM Best A-rated or better carriers.

And for risks that go beyond small business that your admitted markets won't touch, Pathpoint provides brokerage solutions for contractors, habitational risks, and more. If a risk qualifies, agents are notified directly in-app and can opt into Middle Market-Brokerage options with a single click. From there, our underwriting team takes over, shopping the risk across carriers while you stay focused on your next submission. At Pathpoint, we believe E&S doesn't have to be difficult. With the right tech and regional team support, new to the most experienced agents can confidently place both small and complex risks—faster than ever in one smooth workflow.

E&S for the “Soft” Market & Beyond

The soft market narrative doesn’t tell the whole story as agents continue to navigate complex and high-risk accounts. While some admitted carriers are easing up, many risks still need the flexibility and speed of E&S. Pathpoint makes that process seamless, giving you the tools, technology, and carrier access to stay competitive in any market. As we head into the new year, simplify your E&S placements—and grow your book—with Pathpoint.

Place your commercial E&S in one platform—simple, fast, and hassle-free. Log in today.

Mercer, E. (2025, October 23). Global commercial insurance rates fall 4% in Q3 2025, marking the fifth consecutive quarterly decrease. Marsh. Retrieved October 30, 2025, from website

Munich RE. (2024, January 9). Record thunderstorm losses and deadly earthquakes: The natural disasters of 2023. Retrieved October 20, 2025, from website

Smith, A. (2024, January 8). 2023: A historic year of U.S. billion-dollar weather and climate disasters. Climate.gov. Retrieved October 20, 2025, from website