WRIN.tv Speaks with NAPSLO Executive Director Brady Kelley during the recent NAPSLO Convention in San Diego, about market condition, innovation, talent in the industry and his concerns about the future.
Mr. Kelley describes market conditions in the surplus lines as “very strong” with an abundance of capital and a relatively long break from significant catastrophes or loss events. He quotes an A.M. Best report indicating surplus lines premiums are up 6.7% in 2014. Balance sheets are strong; ratings secure. “The market is in really good shape right now.”
“Innovation is what surplus lines are all about.” He says cyber risk continues to evolve, with data breaches and reputational risks causing insureds to re-evaluate the cyber coverage they need. It’s an innovative opportunity for surplus lines carriers. Driverless cars, drone technology and new celebrity risks are among the other new areas presenting opportunities to the market.
Mr. Kelley discusses the ten year anniversary if the NAPSLO Political Action Committee (PAC) and says its support for passage of the Non-Admitted and Reinsurance Reform Act in 2010 was among its biggest accomplishments. The NAPSLO PAC continues to create a presence in Washington DC to ensure Congressional members understand the surplus lines market and what its members do. He notes that passage of TRIA is also a result of this educational work. Most importantly, he says passage of the National Association of Registered Agents and Brokers Act (NARAB) came out of that Bill.
NAPSLO is very involved in recruiting, training and retaining new talent in surplus lines. While talent is a concern for the industry, Mr. Kelley says the Association’s outreach to colleges and growth in NAPSLO’s Next Generation Group/Young Professionals Under 40 are indications of a positive impact on the talent gap.
As he looks ahead, Mr. Kelley says NAPSLO is focused on passage of the Flood Insurance Modernization and Market Parity Act, development of national standards and development of the electronic national platform to process licenses as a result of NARAB.
For more from the 2015 NAPSLO Convention, visit the WRIN.tv On Demand Library.