The mission of the Derek Hughes/NAPSLO Educational Foundation isto encourage the educational development of professionals in theexcess & surplus (E&S) lines industry and to help overcomemisperceptions about the market. The Foundation undertakes severalinitiatives with this aim, all of which help improve understandingof excess and surplus lines.

The Foundation was formed in 1991 and named for retired WesternWorld Insurance Group President Derek Hughes. Hughes, who began hisinsurance career with the Royal Exchange Insurance Group inLiverpool, England, also served on NAPSLO’s Board of Directors andchaired the Education Committee.

The Foundation’s scholarship program is an important piece ofNAPSLO’s career development work. According to Brian Van Cleave,president of the Derek Hughes/NAPSLO Educational Foundation Boardof Directors and senior vice president, Euclid Program Managers,the Foundation awarded 15 scholarships for the 20162017 academicyear. Those students each receive $5,000 for the purpose offurthering and supporting their study of insurance as a career.

“That scholarship is a nice investment in the future of thatstudent and in developing talent for our industry,” said BradyKelley, NAPSLO Executive Director and Foundation Treasurer. “It isa nice complement to the other outreach activities that areundertaken by our Next Generation members and Career Developmentand Internship Committee members.”

Connecting students and employers

The Foundation also provides support for educational eventsannually. The Surplus Lines Symposium, hosted by Troy University,is held in Atlanta in October. The Extreme Risk Takers Symposium,presented by Illinois State University, is held in March inChicago. Both symposiums allow insurance students to hear fromsurplus lines professionals and participate in career fairs withNAPSLO-member firms. In 2016, the Foundation also provided supportto an eDay event hosted by California State University, Fullerton,which focused on the E&S industry for CSUF students.

“These educational events are a great venue for students andeducators to learn more about the industry, and the ability to makeconnections between students and employers is invaluable,” said VanCleave. “Last year the events were attended by more than 500students from 30 universities.”

The Foundation also supports Gamma Iota Sigma and its annualInternational Conference. All of these outreach opportunitiesprovide NAPSLO members with access to talent they can recruit in tothe E&S industry. Kelley said that the Foundation’s commitmentto scholarships and symposiums helps bring NAPSLO’s careerdevelopment work full circle.

Another important education-related initiative of the Foundationis its support of the Associate in Surplus Lines Insurance (ASLI)designation. The ASLI designation program was developed jointly bythe Foundation and The Institutes in 1996. Van Cleave said thatsince the program’s inception more than 2,000 insuranceprofessionals have earned the ASLI designation. To complete theASLI designation, students must pass exams for five courses onsurplus lines insurance-related subjects.

“The ASLI designation offers top-notch continuing education andis highly regarded in the industry. We are pleased to have 94 newdesignees this year,” said Van Cleave.

Annual special report on sector’s financialcondition

While much of the Foundation’s work focuses on students andlearning opportunities for them, its support of the A.M. BestCompany’s annual “Special Report, U.S. Surplus Lines – SegmentReview” is perhaps one of its most widely known initiatives. Thereport is a study on the state of the surplus lines industry and ismade possible through a grant from the Foundation.

Now in its 23rdyear, the report provides A.M. Best’s perspectiveon the state of the market and the relative positions of carriersin the market. It examines the surplus lines sector’s financialcondition and ratings distribution, market trends, regulatory andlegislative developments, distribution issues and impairmenttrends. The report also includes the results of A.M. Best’s surveyof surplus lines insurers measuring the proportion of surplus linespremium derived from various distribution channels.

“The A.M. Best report is a very important tool for theindustry,” said Kelley. “The long-running partnership of theFoundation’s support and A.M. Best’s expertise produces a highlyanticipated document that can help us understand where the industryhas been and where it’s headed. We are grateful for theFoundation’s commitment to this study and the information ityields.”

In addition to individual and corporate contributions, theFoundation hosts an annual golf tournament to raise funds tosupport this work. The Derek Hughes/NAPSLO Educational FoundationGolf Invitational is held in conjunction with the NAPSLO Mid-YearLeadership Forum and employees of NAPSLO member firmsparticipate.

“In 2016 the golf event raised about $115,000, and that helpsmake the Foundation’s ongoing generosity possible,” said VanCleave. “While the money raised is important, the relationshipsformed during events like that are also important. We know thisbusiness is about relationships and people, and the golf tournamentis a perfect embodiment of that as members come together to haveserious fun for impactful work.”

To learn more about the Derek Hughes/NAPSLO EducationalFoundation and its work visit the NAPSLO website.