Why might a broker prefer to work with a non-admitted insurer?

A broker may prefer to work with a non-admitted insurer primarily to access specialized coverage options. Non-admitted insurers are not regulated by the state's insurance department in the same way that admitted insurers are. This allows them more flexibility to craft unique and specialized insurance products that may not be available through admitted carriers. As a result, brokers can provide tailored solutions for clients who have unique risks or require specialized coverage that standard insurers might not offer.

While it is true that some brokers might also consider factors such as premiums or customer service, the primary advantage of working with a non-admitted insurer lies in the ability to meet specific client needs through specialized coverage options. This aspect can be particularly beneficial for industries or situations that require non-standard policies, such as niche markets or high-risk individuals or entities. Thus, the ability to offer a broader range of customized insurance solutions is the core reason that would motivate a broker to engage with non-admitted insurers.