Drew Wilson
The Florida Surplus Lines Association is celebrating its 60th anniversary this week.
The diamond anniversary provided FSLA members an opportunity to reflect on how the industry has changed and expanded beyond the marine and aviation clients it primarily supported in 1960.
“Many industries must keep up with the rapidly changing world around them in order to stay successful,” said FSLA president and senior vice president at RT Specialty Michael Franzese. “Fewer can say this better than surplus lines insurers. The businesses and risks we insure have changed dramatically over the years, from the early years of shipping freight to necessary cybersecurity protections in recent years.”
According to the Florida Surplus Lines Service Office records, surplus lines annual written premium in Florida has grown from $143.7 million in 1998, to $6.7 billion in 2019.
Surplus lines insurance policies cover specialty, niche and high-capacity risks that would otherwise be uninsurable by companies authorized by the Office of Insurance Regulation. Surplus lines insurers are regulated differently than the admitted market, allowing them to help fill gaps when they exist.
According to FSLA, Florida is one of the top three consumers of surplus lines insurance in the country and surplus lines insurers are a critical part of the Sunshine State’s economy, given Florida’s unique geographic challenges, large number of metropolitan hubs and high rate of commerce.
“Things change, new risks emerge, lawsuits happen, and the admitted marketplace cannot always adapt as quickly,” Franzese said. “Surplus lines can help fill the insurance ‘holes’ for customers until the admitted market is able to adapt and innovate, which helps ensure a balanced and complementary insurance marketplace.”
Franzese says the industry will continue to create strong insurance solutions related to new risks like artificial intelligence, autonomous vehicles, COVID-19 and rising sea levels.
“We are proud of the resiliency of our industry and our organization over these 60 years,” he said. “FSLA has worked hard over the past several years to be seen by many as what we truly are, the safety valve and problem solvers of the insurance industry.”
