welcome! - wsia · surplus lines law group | october 11-12, 2018 spring 2019 surplus lines law...

Surplus Lines Law Group | October 11-12, 2018

WELCOME!

Fall 2018 Surplus LinesLaw Group

New York, NY

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THANK YOU TO THESE SPONSORS

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ANTITRUST ADMONITIONThis seminar is intended to inform participants about current developments in the law regarding surplus lines insurance related topics. All persons affiliated with the insurance industry need to be mindful of the constraints of the antitrust laws. There shall be no discussions of agreements or concerted actions that may restrain competition. This prohibition includes the exchange of information concerning individual company rates, coverages, market practices, claims settlement practices, or any other competitive aspect of an individual company’s operation. Participants in this seminar shall not discuss the business interests of any individual insurer or others, including but not limited to, the plans of an insurer involving, or the possibility or desirability of:

• Raising, lowering or stabilizing premiums or commissions;• Doing business or refusing to do business with particular or classes of insurers, reinsurers,

agents, brokers or insureds; or• Acting in any way that would affect the availability of products or services in any market.

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SLLG AgendaOctober 12, 2018 | 8:30 a.m. – 12:30 p.m.

• Welcome Back My Friends To The Show That Never Ends Dan Maher (ELANY)Welcome and sponsor recognition

• Can’t Touch This Dan Maher (ELANY)Anti-Trust Admonition

• Remembering Jim Kilkenny JoAnn DelGatto (AIG)

• While You Were Thinking Dan Maher (ELANY)Review of SLLG survey resultsExample of interactive discussion – Have companies or producers received letters/data calls from the NYDFS regarding gun coverage data?

• From Sea To Shining Sea: Dan Maher (ELANY)State reports (Stamping Offices, WSIA, PCI)

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• Potomac Two-Step: Federal Update Bob Woody (PCI)/Keri Kish (WSIA)a. FATCAb. NARABc. NFIPd. TRIAe. Impact of tax reform on E&S market

• Justice League: Dan Brown (Drinker Biddle & Reath)Update on relevant case law not covered in state reports impacting the E&S market

• Regulation Through The Rearview Mirror: Zachary Lerner (Locke Lord)Discussion of Insurtech and the ability of the regulatory system to facilitate

a. Online marketing of surplus lines insuranceb. Products on demand/use based pricingc. Declination process for online coveraged. Outdated requirements, such as “mailed” cancellation and non-renewal notices

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• Death By A Thousand Cuts: Karen Colonna (Allied World Assurance)State political/policy impingement on surplus lines market

a. New York-NRA situationb. Rhode Island premium payment timing bill (Comment by John Meetz of WSIA)c. Hawaii lava exclusiond. State audits of surplus lines licensees (Minnesota example) (Comment by Kathy McVaney of AmWINS)e. E&S insurer fines

• Dr. No: Steve Stephan (RT Specialty)Trends regarding diligent search and declination requirements, the value of such requirements, export lists

• What’s In Store At The Beautiful Shore: Peggy Dronet (MSLA)Spring 2019 SLLG Meeting Preview

• The Matrix: Howard Greene (ELANY)Cybersecurity laws and regulations – Status and impact on E&S community

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• Once More Unto The Breach: Alan McGuire (Beazley)Cyber liability coverage – What role is the E&S market playing in meeting consumer needs and what are policyholders demanding?

• Up In Smoke: Ben McKay (Surplus Line Association of California)Medical and recreational marijuana coverage – legal status and future outlook in the states, E&S market response and outlook

• Sweet Home Alabama, Alaska, Arizona...: Nancy McCabe (Willis Towers Watson)RPGs and home state issues (tax payments)

• Domestic Bliss: David Kodama (PCI)Update on domestic surplus lines insurers laws/regulations and number of domestic insurers

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2018 SURPLUS LINES LAW GROUP SURVEY RESULTSKEY FINDINGS

• 92 Surplus Lines Law Group (SLLG) attendees responded to the survey, which was sent to SLLG attendees this past summer.

• The vast majority of respondents believe the SLLG should continue to focus on participant-generated topics closely tied to pending or adopted legislation or regulation, case law or regulatory activities to the extent they impact surplus lines.

• 41% of respondents have attended 5 or less SLLG meetings, 36% have attended 10 or more, and 23% have attended 6 to 10.

• Below is a chart showing the value respondents place on various SLLG activities. State Reports, Attendee Discussion of Topics, and Networking are the clear preferences, followed closely by Federal Reports. There is considerable drop-off in ratings for Printed or Electronic Materials, Panel Presentations, Individual Presentations, and Business Development Opportunities.

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ON A SCALE OF 1 (LEAST) TO 5 (MOST), HOW MUCH DO THE FOLLOWING LAW GROUP ACTIVITIES DRIVE YOUR DECISION TO ATTEND?

1 2 3 4 5 TOTAL WEIGHTED AVERAGE

STATE REPORTS 3.26% 3

4.35% 4

10.87% 10

19.57% 18

61.96% 57

92

4.33

ATTENDEE DISCUSSION OF TOPICS

2.20% 2

4.40% 4

18.68% 17

34.07% 31

40.66% 37

91

4.07

NETWORKING 6.74% 6

7.87% 7

14.61% 13

19.10% 17

51.69% 46

89

4.01

FEDERAL REPORTS

8.99% 8

2.25% 2

20.22% 18

32.58% 29

35.96% 32

89

3.84

PRINTED OR ELECTRONIC MATERIALS

7.78% 7

8.89% 8

23.33% 21

40.00% 36

20.00% 18

90

3.56

PANEL PRESENTATIONS

3.33% 3

14.44% 13

31.11% 28

28.89% 26

22.22% 20

90

3.52

INDIVIDUAL PRESENTATIONS

8.79% 8

10.99% 10

27.47% 25

31.87% 29

20.88% 19

91

3.45

BUSINESS DEVELOPMENT OPPORTUNITIES

34.09% 30

19.32% 17

23.86% 21

12.50% 11

10.23% 9

88

2.45

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• While there are some differences in ratings between the three “longevity of attendance” groups, all groups rated State Reports and Attendee Discussion of Topics at the top. Presentations, both panel and individual, never finished higher than fourth with any of the groups.

• The message is that there is a strong desire for an interactive meeting based on state and federal issues that impact surplus lines.

• Attendees prefer that significant time be dedicated to State Reports. 33% do not believe there should be any specific time allotment for State Reports, while 23% think 60 minutes is appropriate. In total, 70% of respondents believe there should be no specific time allotment or 60-75 minutes should be scheduled. 78% of respondents want to see only significant topics that impact surplus lines covered (as opposed to comprehensive topic coverage), and close to half believe that only topics that are not being covered elsewhere in the SLLG agenda should be covered in State Reports.

• With regard to Federal Reports, 66% believe the time, attention and detail currently dedicated is appropriate. Only 20% believe the Federal Reports should be scaled back. However, 57% would like to see the Federal Reports focus more closely on surplus lines industry impact.

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• 57% believe that panels can be useful, but criteria for the selection of topics and speakers should be established. 39% are satisfied with the way panels are currently presented, and a small number of respondents do not believe panels are the best use of the SLLG’s time.

• 68% of respondents would prefer that individual presentations be more informal and interactive. In contrast, 26% would like to have the individual suggesting the topic make a presentation.

• Whether panels or individual presentations, survey comments expressed a common theme that content should be more granular as opposed to the view from 30,000 feet.

• 84% of respondents would like to see materials distributed electronically in advance of the meeting, with Wi-Fi available at the meeting itself.

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State Updates• California Ben McKay (Surplus Line Association of California)• Florida Fred Karlinsky (Greenberg Traurig)• Illinois David Ocasek (Surplus Lines Association of Illinois)• Louisiana Ronnie Johnson (McGlinchey Stafford)• New York Dan Maher (ELANY)• Texas Norma Essary (SLTX)

• Additional States David Kodama (PCI)John Meetz (WSIA) Pam Young (AIA)

• Additional Audience Discussion

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Potomac Two-Step: Federal Update

Justice League: Update on relevant case law not covered in state reports impacting the E&S market

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Regulation Through Rearview Mirror: Discussion of Insurtech

Death By A Thousand Cuts: State political/policy impingement on surplus lines market

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Dr. No: Trends regarding diligent search and declination requirements

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Spring 2019 Surplus Lines Law GroupHosted by the Mississippi Surplus Lines Association

April 4 & 5, 2019Beau Rivage Resort & CasinoBiloxi, MS

Interested in helping sponsor the event?

Contact Peggy Dronet, MSLA Executive [email protected]

or

Keri Kish, WSIA, [email protected]

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mailto:[email protected]

mailto:[email protected]


The Matrix: Cybersecurity laws and regulations

Once More Unto The Breach: Cyber liability coverage

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Up In Smoke: Medical and recreational marijuana coverage

Sweet Home Alabama, Alaska, Arizona: RPGs and home state issues (tax payments)

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Domestic Bliss: Update on domestic surplus lines insurers laws/regulations

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2018 A.M. BEST REPORT HIGHLIGHTS

• $44.9 billion market• 5.8% increase in 2017 surplus lines

premium• 44% increase since 2011• Higher ratings than standard P/C industry• No impairments in 14 years• Strong ratings and resilient

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THANK YOU TO THESE SPONSORS

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welcome! - wsia · surplus lines law group | october 11-12, 2018 spring 2019 surplus lines law...

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