New capacity will be available to relieve the scarcity of insurance coverage leaving property risks high and dry along the hurricane-battered Gulf of Mexico, but it will take time for the market to adjust–especially if states continue to artificially suppress rates, wholesale brokers warn.

“First and foremost, this is a crisis,” said Tom Albrecht, president and chief executive officer of The Barclay Agency in Montgomery, Ala., during a press briefing here with the leadership of the American Association of Managing General Agents at the group's 80th annual meeting.

“The first reaction from a lot of carriers has been to withdraw, but they will come back over time,” added Mr. Albrecht, AAMGA's president-elect.

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