Shawn Moynihan: What are some of the things you're mostproud of having achieved during your term as NAPSLOPresident?

Hank Haldeman: At the beginning of the year mygoals were to build on the initiatives that were already under wayand expand on them. The five key areas of focus for NAPSLO are:Legislative Advocacy, our Education Programs, Career Awareness,Networking and our Wholesale Value Campaign.

In each one of those areas we've hit new plateaus, which is whatI am proud of: taking the vision that has brought NAPSLO to be thesuccessful organization that it is today and continuing to movethat forward on all cylinders. You look on the Legislative Advocacyside and we've seen, finally, the passage of NARAB II as a part ofthe reauthorization of TRIA.

Also on the Legislative or Advocacy side, we continue to seemovement in the direction we want in terms of the implementation ofthe NRRA. We have had three states over the last year, veryrecently, that have moved away from allocated premiums and taxesbased on allocated premiums and into single home-state tax ratesbeing applied. We continue to work toward uniformity, and we'restarting to gain uniformity in various states. They're picking upour suggested language for laws, so there's progress there—but thebig ones are the passage of NARAB and continued progress on seeingthe NRRA implemented the way we think it should.

Moving outside of the Legislative side, on Education we had afirst-ever Management School and it sold out and got outstandingreviews. On the program that we introduced last year (theProfessional Selling Skills Program), we've significantly increasedthe number of sessions that we had. Those continue to sell out justimmediately.

On the Career Development side, again, we have had more schoolvisits by a greater number of representatives than ever before. Wereached out to about 40 schools and more than 2,200 students haveheard us speak. We have continued growth in our Next Geninitiative, which is now at more than 800 members.

Shawn: Yes, as I understand it, up from 700 last year to820 this year. That's huge.

Hank: Now we're working to better integrateNext Gen into NAPSLO at a higher level, so that those who areactive within Next Gen really are contributing to the associationand to the industry. Members of Next Gen have gotten quite involvedin our PAC effort, for example, and our legislative advocacy effortand I think they're really enjoying that. Hopefully, that createsan increasing dynamic where the potential members of Next Gen seethe opportunity to contribute to their industry and help contributeto their firms through those ways, which then Next Gen provides aplatform for.

Hopefully, that will help to continue to build the Next Geneffort and have the younger people in our business continue to seethat value.

Shawn: I wanted to talk about that, because the growthof the membership in Next Gen would certainly verify that NAPSLO'songoing efforts and outreach to educate younger people about theE&S business is obviously working. What's the key to that? Isit the increase in school visits?

Hank: There is definitely an increase in thenumber of school visits, and Next Gen is one of the key drivers inthose. We found that having individuals who are five to 15 years,perhaps, out of school communicating to those in school about theirexperience in our industry is a very compelling message. Theability to identify with the career path that's created by havingsomeone that's a part of their generation speaking to them reallydoes make a difference. But that's bringing people into ourindustry, not necessarily driving them to Next Gen itself.

Shawn: You've seen the A.M. Best report on Surpluslines, which shows that the success story in P&C insuranceright now is really in the E&S market. Freedom of rate and formis critical to being able to provide those types of unusualcoverage solutions, but I think there's a spirit among surpluslines writers that's unique, and a key element of that success insuch a challenged P&C environment.

Hank: In E&S, eventually everything comesback to having the freedom of rate and form—but because of that,from an underwriting and a broker standpoint, we're able to attractindividuals that have a stronger entrepreneurial and creative bent.That makes them responsive, and that's good client service. Thatsells. Along with that comes an energy and an enjoyment in whatyou're doing that translates better into the sales or marketingmessage.

Sometimes it's just something innovative in terms of a policyform, or if you take [a coverage solution] that's being used in oneindustry and move it over to another industry. Then what you end upwith is a product that's more responsive to the evolving needs ofsociety.

Shawn: In summation, what are your thoughts, as yourterm draws to a close this week?

Hank: It's been great fun, I've reallyenjoyed it. Just from a purely personal level, the opportunity tocollaborate with my peers both on the broker and company side inthis industry, in the context of NAPSLO, has led to the developmentof just great friendships, ones that now go well outside NAPSLO andindustry, ones that will go on forever that [my wife] Heather and Ihave both hugely valued.

You know, you'll hear that as a consistent theme among NAPSLOboard members and especially NAPSLO presidents. I've heard it overand over again, but what's always been really enjoyable about thisindustry is the people and interacting with people. Whether it'sinteracting with our producers or interacting with our markets orinteracting with our co-workers, then you get to interact with yourpeers and you're working on a common cause for the benefit of usall. It's great to see.

I'd be remiss if I didn't comment on the organization that BradyKelley has come in and built, the structure that he's created. Itis just a well-oiled machine, it makes the job of president so mucheasier than it might otherwise be. The staff that he's put aroundhim are fantastic to work with. They're great at what they do andthey're fun to work with, too, so that's been a big plus.