The “2016 Special Report U.S. Surplus Lines – SegmentReview,”produced by A.M. Best and sponsored by the DerekHughes/NAPSLO Educational Foundation, reports that the surpluslines market is financially sound. The trend of no surplus linesimpairments for the past decade extended through 2015, and as ofAug. 15, 2016, fully 100 percent of domestic surplus lines carrierswere rated Good or higher with 97 percent of those rated Excellentto Exceptional.

This financial strength is critical to the continued strengthfor the market and, NAPSLO members believe, to the value of thewholesale distribution system within the broader insuranceindustry.

Gil Hine, NAPSLO President and president of McClelland &Hine, said that with this good news for the market it is perhapsmore important than ever for NAPSLO and its members to spread thatword to the retail community. “We need to tell the industry thatthe wholesale distribution system works,” Hine said. “It’simportant to note that in addition to being financially stable, thewholesale distribution system really provides value to theinsurance consumer.”

Hine said that NAPSLO has enhanced its commitment tocommunicating that value through all of its marketing initiativesduring the last three years. “We refreshed the NAPSLO brand in 2013and with that came a renewed emphasis on messaging the importanceof the wholesale distribution system,” he noted. “The key messagethat we know needs to be reinforced for retail agents is thatNAPSLO members are innovators who can help them strengthen theirclient relationships. Wholesale brokers deliver custom insurancesolutions efficiently and effectively and they bring value to atransaction that helps the insured get the right solution for theirinsurance need.”

According to NAPSLO Executive Director Brady Kelley, the NAPSLOapproach to highlighting the value that the wholesale distributionbrings to a transaction has been emphasized across severalplatforms. He said that placed advertising has been an importanttool in the Wholesale Value campaign because the message can betargeted to the retail insurance agent.

(Photo: Shutterstock)

Innovative solution providers

“We have invested in a print and online advertising campaign thatpositions NAPSLO members as innovative solution providers forcomplex risks,” said Kelley. “The advertising is placed in tradeand industry-specific print and online spaces and has receivedfavorable reader feedback. The advertising creative is designed toremind readers to find a NAPSLO member wholesale broker and linksdirectly to NAPSLO’s online member locator. That same memberlocator message and graphic icon is featured in print and on ourNAPSLO website, serving as a visual link between the NAPSLO websiteand the advertising.”

As part of its Wholesale Value message initiative, NAPSLO hasalso worked to develop proactive relationships with tradepublications. Hine said that the Association has had success inworking with media outlets to provide editorial content on behalfof the Association and to assist in providing information to thoseoutlets on important legislative issues. He added that thoseeditorial placements and the ability to be a resource to mediaoutlets for news stories is an important part of NAPSLO’sintegrated effort to message the value that the surplus linesindustry brings to the overall U.S. economy and specifically howthe wholesale distribution system is good for the insured.

“The approach is consistent and strategic. The paid advertisingplacements echo the message that’s leveraged in editorialopportunities and those echo the message that is shared on theNAPSLO website and in other communications,” Hine explained. “Weknow that NAPSLO members conduct each transaction with the highestlevel of integrity and that every one of them is committed toefficiently creating the best solution for complex risks. TheWholesale Value campaign just reinforces the message to the retailindustry that NAPSLO members can and should be looked to as trustedexperts.”

Dave Leonard, NAPSLO Vice President and chairman and CEO of RSUIGroup, believes that many retail agents do understand the value thewholesale broker brings to an insurance transaction. “I think thatthere are many agents who know that there is no cost for seeking aquote from a wholesale broker on behalf of their client, and theyunderstand that in many instances that wholesale broker will helpcraft a solution that’s superior for their insured,” he said.Leonard adds that it remains important for NAPSLO to continue totell that story. “NAPSLO members demonstrate this value daily, butwe have to consistently remind our retail partners.”

Kelley said he believes that the Wholesale Value campaign is animportant and valuable benefit of NAPSLO membership. “The NAPSLObrand represents integrity and innovation in the marketplace andwe’re very proud to be able to promote the value that NAPSLOmembers offer to retail agents and their clients,” Kelley said. “Wecontinue to update our message and related tools for members sothat they can better leverage those in their own organizations andwith their retail partners.”

Member logo seals and usage guidelines for the logo areavailable on the NAPSLO website. Kelley said that the NAPSLOteam can assist members in using the logo and help determine wherethey might most effectively incorporate it in their messaging ifthey desire assistance.

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