E&S Professionals Meet Challenges with Innovative Solutions

I was invited to speak to the San Antonio Independent Agents in January of 2000. At that moment I knew the property casualty insurance market was going to harden. They wanted to know what an excess and surplus lines broker looked like and how we acted. I was beginning to have a very warm feeling. Needless to say my prognostication of a gradually firming market was overwhelmed by the events of 9/11 and so was our entire industry. What was clearly a trend of deteriorating results soon became a rout with the entire property casualty industry losing money for the first time in its history. The excess and surplus lines segment of our industry true to its tradition became a safety valve for a growing number of insureds. And, true to its tradition the industry has responded remarkably well.

Excess and surplus lines agents and companies continue to find innovative solutions to insurance problems whether it’s a new small start up venture or finding capacity for a multi-billion dollar off shore drilling rig. The essence of our success is the freedom to adapt coverages and premiums to meet the unique needs of each insurance buyer. With that freedom comes a responsibility to meet these needs with high standards of fair dealing.

As an industry, we have understood this responsibility. In 1956 leading excess and surplus lines agents saw a need for an association to meet the challenges and opportunities of the day and formed the Texas Surplus Lines Association (TSLA). Its core mission is to serve its members and to protect the public and its trust in the business of excess and surplus lines insurance. I don’t think any event exemplifies that commitment more than the efforts of TSLA members in the creation of the Surplus Lines Stamping Office of Texas. TSLA members in cooperation with the Department of Insurance and the Texas Legislature created the Surplus Lines Stamping Office of Texas as an independent regulatory vehicle. This agency has provided effective supervision of our industry without destroying the creativity necessary for us to serve the specialty insurance needs of Texas. This cooperation continues to this day as Texas, the Department of Insurance, the Stamping Office and our industry face new challenges.

Because our industry provides unique and special coverages, communication and education become critical ingredients to a successful transaction. With that in mind TSLA members through our association have made a strong commitment in resources to expand the knowledge of our industry to agents and their customers. The TSLA Product Guide is one of the most current and comprehensive guides for difficult to place coverages. Online or in print it has become a well-used resource for a number of successful agencies and their customer service representatives. The TSLA Speakers Bureau provides volunteer speakers to insurance organizations across Texas and delivers important information on current industry developments. TSLA has continuing education (CE) credit courses on a number of excess and surplus lines topics. The efforts continue to provide information that improves the understanding of our industry and how we do business.

To an insured, an excess and surplus lines insurance transaction can seem complex with multi-paged, legally scripted policies, arcane language, and unfamiliar insurance companies. Clearly, an insurance professional dedicated to the business has a far greater chance of satisfying the needs of the insured. I have been in the excess and surplus lines business for almost twenty years. I have been a member of the Texas Surplus Lines Association from the beginning. It is very clear to me that the opportunity for success when placing business in the excess and surplus lines market will be vastly improved if you are dealing with a professional excess and surplus lines agent and your odds of finding one rise dramatically if you do business with a Texas Surplus Lines Association member.

Gilbert C. Hine, Jr., CPCU, is the 2001-2002 president of the Texas Surplus Lines Association, as well as president of McClelland and Hine Inc., a managing general agency and excess and surplus lines broker. In addition, he recently became the proud grandfather of a new granddaughter.

Topics Texas Agencies Excess Surplus