Like other niche markets, the public entity marketplace is not immune to the challenges facing the insurance industry today. Although our industry is hopeful that conditions gradually improve, the hard fact remains that it's still a soft market.

In today's uncertain financial environment, public entities are exposed to a shrinking tax base, expanding operational cost and increased pressure to deliver comparable or in many cases, additional municipal services. Boards and managers across the country are stretched and under substantial pressure.

It is difficult to paint a broad stroke on public entity market conditions, mainly because they vary greatly state by state. If a particular state is "pool heavy," then the conditions for a provider are much more challenging. States may have a long history with one carrier and in many instances the entities flock together. It's up to the new provider to analyze and compare coverages and enhancements, then expose any existing deficiencies to a prospect insured. There are also situations where a provider decides to leave the market, which then opens up the marketplace to others, creating a strong competitive market. The key is that agents and brokers with an experienced public entity insurance provider can size up the marketplace in their state territory.