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As we climb out of the settling dust from the 2005 hurricane season and look forward, what can we expect from the Surplus Lines market in 2006? It may still be too early to accurately say where we are headed at this point. Multiple factors are impacting the availability of property coverage for the immediate future, and perhaps for years to come. These factors include: significant international losses as well as the those experienced in our Southeastern United States in the past few years; the availability and cost of reinsurance due to these large losses; modeling that saw losses many times more than anticipated; continuing claim payment activity with demand surge costs; downgrading/loss of available carriers; and new players on the horizon. It’s important to review all of these factors to get the total picture.

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