RLI Targets High-Stakes Fun with Specialized Amusement Insurance Division

PEORIA, IL – July 07, 2026 – In a strategic move that underscores its focus on complex, niche markets, specialty insurer RLI Corp. has announced the launch of a new Entertainment & Amusement insurance division. The Peoria-based company is stepping into the high-stakes world of insuring everything from towering roller coasters to local festivals, a sector often deemed too volatile by mainstream carriers. To helm the new venture, RLI has appointed Kym Tormey, a 35-year industry veteran, as Vice President, signaling a deep commitment to becoming a dominant player in this specialized field.

The launch is more than a simple product rollout; it represents a calculated expansion into a market valued at over $54 billion globally. By dedicating a new division to the unique risks of the amusement industry, RLI is betting that its disciplined underwriting and specialized expertise can bring stability and tailored solutions to businesses built on delivering thrills.

A Calculated Play in a Niche Market

RLI's entry into amusement insurance is a classic execution of its long-standing business strategy: identify a complex, underserved niche and conquer it with deep underwriting expertise. For decades, RLI has built its reputation and financial strength—achieving its 29th consecutive year of underwriting profitability in 2024—by avoiding mass-market price wars and instead focusing on sectors where specialized knowledge is paramount.

The entertainment and amusement industry is a prime example of such a niche. The sector, projected to reach $82.4 billion by 2030, encompasses a dizzying array of businesses, including traditional amusement parks, family entertainment centers (FECs), seasonal fairs, mobile carnivals, and a growing list of modern attractions like axe throwing venues, escape rooms, and ropes courses. While these businesses are cornerstones of local economies and family fun, their risk profiles are anything but simple. They face unique liability challenges related to guest safety, the maintenance of highly specialized equipment, seasonal revenue fluctuations, and large-scale event management.

"This launch reflects RLI’s continued focus on identifying opportunities to serve specialized markets through deep underwriting expertise, exceptional service and strong distribution relationships," said Jen Klobnak, RLI's Chief Operating Officer, in the company's official announcement.

This specialized focus allows RLI to move beyond one-size-fits-all policies. The company has assembled a dedicated underwriting team with over 50 years of combined experience in this specific field, capable of assessing the distinct risks of a go-kart track versus a multi-day music festival. This granular approach, backed by the company's A++ "Superior" rating from AM Best, aims to provide a stable, long-term insurance partner for an industry that has often struggled to find consistent coverage.

The 'Non-Admitted' Advantage for Complex Risks

A critical component of RLI's strategy is its decision to offer the new property and casualty coverage on a "non-admitted" basis in all 50 states. For those outside the insurance world, the term might sound concerning, but in the realm of specialty insurance, it is a key enabler of innovation and flexibility.

Non-admitted, or surplus lines, insurers are not bound by the same rigid rate and form regulations that govern standard "admitted" carriers. This freedom allows them to craft highly customized policies and price risks with a level of precision that the standard market cannot match. For an amusement park with a one-of-a-kind ride or an event organizer planning a novel immersive experience, the ability to obtain a manuscript endorsement—a completely custom clause—can be the difference between being adequately insured and dangerously exposed.

This flexibility is essential for covering the evolving landscape of the amusement industry, which RLI notes will soon include coverage for adventure parks, agritourism, zip lines, and even zoos. The non-admitted market is specifically designed for these "hard-to-place" risks that admitted carriers often decline.

The primary trade-off for this flexibility is that non-admitted policies are not backed by state guaranty funds, which protect policyholders in the event an insurer becomes insolvent. This places a significant premium on the financial strength of the carrier itself. Here, RLI's financial discipline becomes a core selling point. Its A++ rating from AM Best and A rating from S&P are the highest possible endorsements of its financial stability and claims-paying ability, providing brokers and their clients with the confidence needed to operate outside the state-backed safety net.

Veteran Leadership to Navigate the Funhouse

A strategy is only as good as the team executing it, and RLI has made a significant statement with the appointment of Kym Tormey to lead the new division. With over 35 years in the insurance industry, including nine years leading specialty entertainment and amusement programs at major firms like AXA XL and Arch Insurance Group, Tormey is one of the sector's most experienced and respected leaders.

Her appointment signals that RLI is not merely testing the waters but is making a serious, long-term investment. Building a profitable book of business in this niche requires not just underwriting algorithms but deep relationships and a nuanced understanding of how these businesses operate on the ground.

"We’re excited to welcome Kym to RLI," Klobnak noted. "Her extensive industry experience and proven leadership will help us deliver tailored solutions that meet the evolving needs of the entertainment and amusement marketplace."

Tormey herself expressed a commitment to the community she will be serving, stating, "I'm excited for this opportunity because it allows me to work with a community I genuinely respect and have experience serving." This sentiment, combined with the division's promise of in-house claims handling and on-site ride inspections, suggests a service model built on partnership rather than just policy sales. Tormey's team is tasked not just with writing premiums but with becoming an integral part of their clients' risk management framework.

Reshaping Risk for the Thrill-Ride Economy

RLI's entry comes at a time of significant growth and change for the broader entertainment insurance market, which is projected to grow at a compound annual rate of over 10%. This growth is fueled by an explosion in live events, increasing media production, and a heightened awareness of risk management across the board. While established giants like Aon and Chubb operate in the space, RLI is carving its niche within the niche, focusing on the unique physical and liability risks of the amusement sector, a space where specialists like Prime Insurance Company have demonstrated a clear market need.

For owners and operators of amusement businesses, the arrival of a new, highly-rated, and deeply specialized player is welcome news. It introduces more capacity and competition into the market, which can lead to more favorable terms and innovative coverage solutions. RLI's emphasis on a flexible, solution-oriented approach could address long-standing pain points for operators who have had to patch together coverage from multiple carriers or go without insurance for certain exposures.

The company's recent financial actions, including a special dividend and an increased share repurchase program, paint a picture of a financially robust organization deploying its capital with precision. The launch of the Entertainment & Amusement division is not a speculative gamble but a deliberate extension of a proven business model into a new, promising frontier. By combining financial strength, underwriting discipline, and veteran leadership, RLI is positioning itself to become the go-to insurer for the business of fun.