Philadelphia, PA

Relationships, differentiation from competitors, being the first source of “solving problems” and passion and pride for both the business and the industry, are the keys to success in today’s soft market for Managing General Agents and specialty insurance professionals, according to two different panels of executives – insurance company chief executive officers and the principals of general agents – at the inaugural AAMGA University East, held February 29 through March 2, in Philadelphia. The two panels were among the highest attended of 17 courses offered during a weekend filled with a wide variety of educational opportunities, including agency management, professional development, ethics and technical underwriting courses.

The CEO panel was comprised of four high-level executives from U.S. and international insurance and reinsurance companies:

• Paul Goodwin of Munich Re America
• Thomas P. Nerney of United States Liability Insurance Group (USLI),
• Patricia Roberts of General Star and
• Paul W. Springman of The Markel Corporation

In four intense and lively hours of often contrasting discussion, along with a very active question and answer period with the attendees, the panel members offered their overviews, experiences and expertise on a broad range of topics, including compliance with the growing web of U.S. and international regulation, mergers and acquisitions, technology issues, surplus and aggregates, sales and marketing, outsourcing – both domestically and overseas, and employee recruitment and retention.

The audience’s main interest was the panel’s view on the current soft market. Panel members offered divergent advice, ranging from a disciplined dedication to underwriting to a core path regardless of market conditions, to maintaining a continual flexibility and nimbleness to react quickly and effectively to the needs of customers and the market. Another view was to ensure underwriting takes place within a consistent, dedicated circle of competence, while at the same time looking for opportunities to identify and fill in gaps in existing standard and surplus lines coverages.

All of the CEO panelists agreed that relationships – building and maintaining them both with companies and retailers – was integral to wholesalers’ success in any market, whether soft or hard. This view was echoed by members of the panel of principals of general agents, also moderated by Executive Director Bernie Heinze, on Saturday afternoon. The panel, consisting of:

• Mary Marines of Pennock Insurance Company
• Leonard LoVullo of LoVullo Associates
• Frank Mastowski of Jimcor Agencies and
• Adam Devine of Excess Insurance Company

offered the view that building and maintaining relationships -- partnerships with companies, and service and value-added relationships with producers -- were the keys to sustaining business and remaining profitable under current market conditions. The panel members also spoke to the unique ways in which each of their individual organizations sought to cultivate those relationships, from offering greater efficiencies through technology to a corporate culture that underscores both the foundation on which the entity operates and holds itself out to the industry as well as in recruiting and retaining not “good” but “great” employees.

Training initiatives to enhance the intellectual capital of employees and constructing career tracks to further develop their capabilities, getting exposure and recruiting young professionals and prospective employees while still in school, were also identified as positive ways to differentiate one’s business and sustain profitability.

To this end, the MGA Executives Panel session, and its participants, had the benefit of students from Temple University’s School of Insurance and Risk Management and members of the Gamma Iota Sigma insurance fraternity, who also attended and actively participated with questions and their views of the marketplace.

The AAMGA’s next University Weekend will be held August 22 – 24, 2008 at the Scottsdale Plaza Resort in Scottsdale, AZ. For further information, please call Jeff Henry, AAMGA Education Director: 610.225.0352, or by e-mail: jeff@aamga.org.