What are surplus lines insurers often referred to as?

Surplus lines insurers are often referred to as non-admitted insurers because they operate outside the standard regulatory framework that governs admitted insurers. Unlike admitted insurers, which are licensed and regulated by the state's insurance department and are required to meet specific financial and operational standards, non-admitted insurers do not have to adhere to the same regulations or approval processes.

This distinction is crucial for understanding the nature of surplus lines insurance. Surplus lines insurance is designed to cover risks that are not available through the traditional market due to their unique or high-risk nature. As non-admitted insurers, they often offer coverage that may not be available through admitted carriers, which makes them a vital part of the insurance landscape for businesses and individuals who require specialized coverage.

Admitted insurers, on the other hand, have a greater level of regulatory oversight, which can limit the types of risks they can underwrite. Captive insurers and mutual insurers are also distinct categories with specific structures and purposes that do not align with the characteristics of surplus lines insurers.