John Latham will step aside as National Association of Professional Surplus Lines Offices (NAPSLO) president later this month making room for Tap Johnson, Jr. Before his exit, he agreed to spend a few minutes with Insurance Journal to review his term as the head of the organization.
“Perhaps the most important thing I want to say is what a great honor it has been for me to know that agents were willing to have me as their president,” Latham said. He is one of only three men to have served as president who were not agents but were from the company ranks. Latham is president and CEO of Colony Insurance Company, Richmond, Va. The other two were Kevin Brooks and Paul Springman.
Latham said he believed the organization has done a great job in trying to protect the surplus lines industry as a viable part of the market when working with lawmakers and regulators. “NAPSLO only represents 8 percent of the commercial market, so we tend not to be too aggressive in driving a stake in the ground on issues,” he said. “Rather, we try to influence decisions.”
One of the areas where NAPSLO is wielding its influence involved the issue of federal chartering. At the moment there are three proposals on the table, from the AIA, ACLI and the ABIA.
In fact one of the speakers scheduled for the NAPSLO convention later this month is James Sivon of the ABIA. He is counsel for the ABIA and is responsible for having drafted their proposal.
In commenting on the broader issue of federal chartering, Latham said he didn’t think any of the proposals was mature just yet. “The sort of reciprocity required is not there.” Latham said he believed that NAPSLO’s continuing role will be to try to influence lawmakers so that surplus lines markets are protected.
“Surplus lines provides a very valuable service for the market and I believe it has been especially effective during the hard market. But I think it may be another five years before we see a fully developed federal charter.” He said he thought the federal charter would provide an option for producers rather than be an either/or proposition.
Latham commented specifically on NAPSLO’s position regarding the move toward a federal charter. “I think we all share the level of frustration with the complexity of the state regulations. Compliance proves to be very expensive for companies, and the licensing and filing regulations are difficult and far from consistent.”
He said NAPSLO has worked closely with regulators in continual efforts to educate them on the surplus lines industry. Last fall NAPSLO worked with the NAIC to conduct the fifth school on Excess & Surplus Lines, which was attended by 32 representatives from various regulatory bodies throughout the U.S.
In addition to these developments, committees worked on a number of initiatives, according to Latham. The education committee updated the programs for the E&S and Advanced School to include a look at e-commerce as well as other topical developments.
With the deregulation issue giving way to Gramm-Leach-Bliley and its NARAB provisions, the legislative committee continued to monitor and analyze legislative and regulatory developments, provide member education, and develop and direct responses.
“One of my goals was to bring to a culmination the initiative to provide members a source of information about the fast-paced technology developments particularly as they applied to insurance,” commented Latham. The information systems & technology committee established a staff technology resource position which was filled by NAPSLO veteran Mike Ardis. His expanded duties will continue to include work as director of communication and information.
In earlier comments Latham said that previous membership surveys have shown that technology is one of the most important issues NAPSLO faces. “Members also indicated a strong desire for assistance. With this new position, NAPSLO is a new resource and also ensuring that our members’ interests will be represented.” The new position also gives NAPSLO a voice for the technology sector so that surplus lines is not excluded in technology developments.
In an effort to attract and retain new and younger members, Latham said his administration introduced a new committee, the Members’ Forum, to expand the involvement of emerging leaders in surplus lines. “This group will focus on what we can do to involve more new people in NAPSLO. They will also provide input to help us look farther down the road so that NAPSLO can continue to respond to the fast-changing landscape of the E&S marketplace and the challenges faced by the wholesale agent/broker.”
Asked whether he had any words of advice for Tap Johnson, Jr. and the incoming officers, Latham responded: “Tap will be a terrific president. I have watched him work for several years on the board. Your elected representatives and the tremendous NAPSLO staff are well prepared to lead us forward.
“One of the greatest benefits of this job has been the relationships I’ve been able to build with the people I work with. I have thoroughly enjoyed it.
“I wish Tap Johnson great success in the coming term and I wish him an extended hard market.”
Topics Legislation Excess Surplus Tech
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