The surplus lines industry is healthy, with slight growthanticipated for the coming year. The last nine years indicate thatcompanies are financially stable, which points to a proven businessmodel that shows the value and importance of surplus lines and thewholesale distribution system in the insurance industry.

2014 is not without its challenges. The largest is for E&Sprofessionals to help retailers and insurance buyers understand howto leverage wholesalers to best meet the needs of theirclients.

Wholesalers often specialize in one industry or a handful ofrelated industries and associated product lines, enabling them tobe experts. This specialization also makes them excellent allies inpreparing documentation for underwriters and ensuring thatsituations unique to that particular industry are considered.Wholesalers foster flexibility and creativity when working in nichemarkets.

For retail agents, cultivating a relationship with wholesalersis critical for writing hard-to-place risks. When clients walkthrough the door, retailers are ready to respond with the help ofwholesale brokers.

Working with a member of the National Association ofProfessional Surplus Lines Offices (NAPSLO) is a great way tocultivate a relationship with the right wholesale broker. NAPSLO isa professional membership organization of brokers, agents,underwriters and associates who are committed to the surplus linesindustry and the wholesale distribution system.

Since 1974, NAPSLO has provided members with networkingopportunities, regulatory and legislative advocacy and educationand career development programs. Headquartered in Kansas City,NAPSLO has more than 700 member firms from 1,500 offices.

Member firms are adept at providing coverage for risks that thestandard market cannot, while adhering to a strict set of guidingvalues. They routinely deal in business that is nuanced and canefficiently discern not only what needs to be covered in a policy,but also what is of highest importance to the client.