AM Best has kept its stable outlook for delegated underwriting authority enterprises (DUAEs), noting a fifth year of double-digit premium growth in 2025, ahead of the wider property/casualty sector. The agency expects this pace to slow as insurers become more selective, prioritising profitability and governance over rapid expansion.
Regulators are increasing scrutiny of underwriting quality, transparency and internal controls. Insurers are responding with deeper reviews of delegated authority, claims handling and data integrity. AM Best says DUAEs remain key partners for capacity providers, especially in emerging risks and technology-driven platforms, but face growing competition from alternative capital, insurance-linked securities and private equity.
The report notes likely continued M&A activity, with smaller and less-differentiated DUAEs at risk of acquisition. The market is moving from fast growth to a focus on quality, with long-term success hinging on disciplined underwriting and operational maturity.
