Axa XL's Pilko: Emerging risks will continue to drive E&S growth

Axa XL’s Americas CEO Lucy Pilko has predicted continued growth in the E&S market on the back of emerging risks such as cyber and environmental liabilities.

In an interview with The Insurer TV, Pilko said emerging exposures such as PFAS (per- and polyfluoroalkyl substances) would help sustain momentum in the E&S market, which recorded its sixth consecutive year of double-digit premium growth in 2023.

“We've seen tremendous growth on the E&S market over the last few years, and we will continue to see disparate growth in that market,” she said.

“What I tend to see is more about emerging risk coming into the E&S market, versus risks that have an established base in the non-admitted world coming over at this point into E&S.”

“Included in those emerging risks are AI risks that we see continue [to] surge on the cyber front. We're talking about issues around PFAS and other risks that have a lot more of an unknown trajectory about what the ultimate cost will be,” said Pilko.

Wholesale division

Pilko said Axa XL had been taking steps to make it easier for its wholesale partners to navigate the business, including shifting its organisational model from one based around geography to one centred around specialisation.

“Our restructuring was really about moving from a generalist model to a specialist model. Previously, we were organised around geography, but now we are mostly organised around customer segments,” she said.

This increased emphasis on specialisation has led to the creation of a wholesale segment, Pilko said.

“We have a large commercial segment, a professional lines segment and a mid-market segment. Additionally, we are consolidating all of our wholesale resources into a wholesale segment called Axa Wholesale Solutions.”

She said this restructuring has also enabled Axa XL to offer a broader range of products to clients.

“It allows us to tailor our product offerings and think strategically about the operating model behind them. Different markets have different priorities, and we need the right people, processes, and technologies to meet those specific client needs.”

“When a client requires a broad spectrum of products, they can engage with their Axa XL partners to explore the entire suite of offerings, both in insurance products and the additional services that go beyond that,” she added.

Watch the full 8-minute interview to learn more about: