In the wake of the 2004 and 2005 hurricane seasons that resulted in more than $30 billion in losses, and the subsequent legislative changes made by lawmakers that are less than favorable to the industry, a prevailing concern among agents is to what degree will insurers pull back from the market. So far the answer to that question hasn't been pretty. Poe Financial and Van Guard Fire & Casualty have slipped into bankruptcy with all the ease of a cargo ship hit by a torpedo. Allstate Floridian is off-loading policies as fast as possible to Royal Palm Ins. Co., while USAA and State Farm Florida–among others–are taking steps to rein in their exposures. Meanwhile, the state is turning Citizens Property Insurance Corporation into Noah's Ark, which, at 70,000 applications a month, is more likely to turn into the Titanic.

When the marquee names of the industry start making major moves that affect tens of thousands of policyholders, it is understandable that they receive so much publicity. And fortunately (or unfortunately), agents can at least maintain their livelihoods by placing homeowners' policies in Citizens. What is sometimes lost, however, is how other decisions made by an insurer can affect agents and their bottom lines. A case in point is the recent move by The Hartford Group to discontinue writing residential lines of coverage through independent agents, a move that will affect 155 independent agents around the state, many of whom have had a business relationship with the carrier for years. While the carrier's move will have little impact on the market and consumers, it represents one more challenge that agents face in an already uncertain environment.

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