From 1980 to 2024, there were 46 confirmed climate disaster events – including 14 drought events, six flooding events, three freeze events, four severe storm events, and 19 wildfire events. The cost of these individual events? Losses exceeding $1 billion each.
In an era of heightened risks from natural disasters and emerging threats, the Surplus Line Association of California (SLA) is watching these disasters play out with an eagle eye – making it their mission to ensure that Californians have access to innovative and flexible insurance solutions. According to Cliston L. Brown, SLA vice president of public affairs, the SLA has spearheaded initiatives that address both immediate disaster response and long-term market adaptability.
One standout effort is the establishment of the California Insurance Emergency Response Association (CIERA), created in collaboration with SLA leadership.
“The SLA, a couple of years ago, created the California Insurance Emergency Response Association, also known as CIERA,” Brown said. He explained that the association aims to streamline the insurance industry's response to major catastrophes, particularly earthquakes.
“When it’s fully up and running, it seeks to provide a single point of contact for agencies such as the California Office of Emergency Services in the crucial early days after an earthquake,” he said. This initiative, which Brown called a “very, very big step,” is a first-of-its-kind effort in the US, reflecting the SLA’s commitment to improving disaster response and delivering faster relief to affected policyholders.
The SLA’s influence extends beyond natural disasters to complex risks like cyber threats and climate change. Brown detailed the steps the SLA has taken to keep the surplus line market innovative and flexible.
“We offer a comprehensive continuing education curriculum free to all of our members,” he said. These webinars and live events focus on industry developments and emerging risks, equipping members with the knowledge to tackle new challenges. Additionally, the SLA’s data analysis efforts help members identify market trends and opportunities.
Moreover, the SLA maintains an ongoing dialogue with legislators and regulators to ensure the surplus line market evolves in tandem with consumer needs.
“We liaise with legislators and regulators to help facilitate innovation and ensure that our sector is meeting the needs of consumers in a rapidly evolving insurance environment,” Brown said.
The SLA’s commitment to shaping a responsive insurance market is perhaps most evident in its advocacy work. Brown cited the successful passage of California Assembly Bill 1641 in 2017 as a significant milestone.
“The bill gave the California Department of Insurance the authority to consider new and innovative products for inclusion on the export list,” he said. The export list simplifies the placement of surplus line products by eliminating the requirement for brokers to seek multiple declinations in the admitted market, thereby expediting the introduction of novel coverages.
The SLA also works closely with other insurance organizations and state entities to ensure surplus line insurers can address emerging risks effectively.
“We often testify before the California Legislature and other committees, such as the Little Hoover Commission,” Brown said. “They called upon us this year to testify during a hearing on homeowners insurance issues. We are very, very involved in educating and working with regulators, legislators and industry stakeholders to ensure that surplus lines insurers can continue to provide coverage that Californians need.”