RESEARCH KINSALE

“Kinsale operates in the PNC industry and this is a massive, mature industry. Within the PNC industry sits the excess and surplus market, which is much more dynamic and it's oftentimes referred to as the non-standard market or the specialty market. The excess and surplus market is unique in that it's a market that standard insurance companies won't insure.”

“Kinsale Capital operates in the non-admitted market, which aren't as regulated as the admitted market. So since Kinsale is not as regulated as a traditional insurer, they have more flexibility in their business, so their rates and policy forms don't require prior state approval, and they can customize coverage for unique risks, and they can price policies more freely based on that risk.”

“A few examples can include insuring a construction company that's doing very dangerous work, ensuring a building in a wildfire prone area, a brand new business with no operating history, or maybe unusual liability exposure such as amusement parks, for example. Kinsale is able to step in, look at the situation and see if they can put together a policy that makes sense both for them and the insured.”

“I cannot count the number of times we would get asked why are you increasing your premiums by six percent, why not two percent, or why not zero percent, or they would just flat out reject the increase and say that premiums need to stay where they're at. The state to me sort of acts as this watchdog for the industry to ensure that consumers are being charged fair premiums.”

“E&S companies like Kinsale tend to write most of their business in states that are more litigious, meaning that there are more lawsuits that tend to occur in these states. Now, even though the risks that they are taking on are perceived to be higher risk, the important thing is that they're pricing that risk appropriately. Although these types of policies might seem like they're higher risk, they can also bring in higher margins because they tend to attract less competition.”