A special report from A.M. Best Co. confirms what is being heard from the U.S. surplus lines insurance industry: the standard market remains a source of pricing pressure.

The admitted market is competing for risks traditionally insured in the surplus lines market, driving a decline in direct premiums written (DPW) for the third straight year, according to the report, "Surplus Lines Drained, Not Dry, From Soft Market and Economy."

However, A.M. Best said it believes surplus carriers' solid underwriting and relationships with agents and brokers should allow them to keep hold of core business.

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