Deregulation of the commercial lines business began in earnest during 1998 and 1999, and nearly half of the states now have statutes that allow deregulation as to rate and/or form. In its broadest sense, deregulation is considered to foster a more competitive market environment leading to lower rates combined with products that can be tailored to meet the needs of insureds.

Florida's entry into deregulation began under Gov. Charlie Crist during 2010 with the passage of SB 2176. This bill deregulated what have been referred to as "more sophisticated" lines of business, including excess/umbrella, D&O, intellectual property, patent infringement, and property risks rated under highly protected risk rating plans. Commercial auto was also included, but was limited to fleets exceeding 20 vehicles. 

During Florida's most recent legislative session, deregulation was expanded by HB 99. Passed almost unanimously by both houses, this bill added non-residential property and multi-peril policies, excess property, burglary and theft, general liability and fiduciary liability to the lines of coverage deregulated. The limitation on commercial auto was also removed. Simply put, the bill provides that insurance companies writing these types of commercial insurance will no longer be required to file with, or obtain approval from, the Florida Office of Insurance Regulation before the insurer can charge the rate it desires. This sounds very similar to one of the basic principals of surplus lines—freedom of rate.