In the 30 years I've worked in Florida's insurance arena, I have seen regulation and legislative changes implemented with the single purpose of assuring greater liquidity and decreased insolvency of regulated carriers. Yet literally hundreds of property and liability companies have liquidated for a litany of issues, including inadequate access to reinsurance.

As the ability to maintain adequate surplus becomes more difficult, an increasing number of insurers are being forced to decrease premium writings, take on less risk, and raise additional capital. As a result, the number of private carriers is decreasing.

Even when carriers raise an adequate amount of surplus, they face another, equally important hurdle: Proper and adequate reinsurance. Given the specialty markets in Florida, quality reinsurance from quality reinsurance companies is as vital as surplus. Often, the only companies interested in Florida are non-U.S. reinsurers. In this tight market they can cherry-pick their clients, placing their capital with the most profitable, stable companies and lines of insurance.