It is unlikely that there is a person in Florida who is not aware that the state has major problems concerning insurance. The problems have resulted from some 50 years of neglect and mismanagement. They will not be solved instantly, nor will a single quiet hurricane season be the answer. While the very calm 2006 season was a wonderful relief, it does not mark the end of the intense cycle we have been in for the past few years.

While some people believe that prices will come down in the near future, it is not likely that any rate decrease will be significant. Rates will not come down to any degree without several years with no storms, or until the state takes positive steps to fix the problem. If the legislature's answer is to force admitted rates down, keeping rates artificially low in the residual markets, and then to expand the CAT fund, don't expect to see the admitted market coming back. All you will get are larger assessments.

The question is, How does a responsible insurance agent deal with the market as it now is? In many cases, the surplus lines market is either the only available market or is the preferable one for a variety of reasons.

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