As his term as NAPSLO president draws to a close, Gil Hine spokewith National Underwriter Property & CasualtyEditor-in-Chief Shawn Moynihan about the E&S market’s future,NAPSLO’s role and the advice he’d offer his successor.

Shawn Moynihan: Among the things you’ve achieved duringyour term as NAPSLO’s president, what are you most proud of, andwhat work still needs to be done?

Gil Hine: I want to expand that answer toencompass my entire time on the board and combine that with theefforts of past and current board and executive committee members.One of the most important strategic decisions we made a few yearsago was to commit significant financial resources to hiring atop-flight executive director and giving him the authority to builda full-time professional staff to serve our members. It is nowreflected in everything NAPSLO is doing.

Look at our convention with record attendance. Look at ourlegislative initiatives at the federal and state level. Look at thegrowth of our education programs and career awareness. Look at ourcommunications, website and wholesale value campaign. NAPSLO is apremier national association and a leading voice for the insuranceindustry. The investment we made and continue to make is paying offbig time.

For me personally, I served as Education Co-Chair and amthrilled with the growth in schools and education programs since Ijoined the board. The additions to the education program offeringsinclude the Management Program, which is offered in partnershipwith Emory University and the Consultative Selling and Negotiationprograms, which are offered around the country making them veryaccessible to members. We have also recently redesigned theRegulatory Compliance online program to a more interactive format,which is a big improvement.

Moynihan: The E&S market continues to be the realsuccess story in P&C insurance, showing true organic growth andmore successful coverage innovations. To what do you attributethis? What makes Surplus Lines such a unique market to bein?

Hine: The absolute No. 1 reason the E&Smarket thrives is the people who choose to make a career in oursegment of the market. They are innovators. They are entrepreneurs.They are willing to take risk.

Beyond that, you have:

• An overall favorable state regulatory climate that has endorsedand supported the concept of “Freedom of Rate and Form” for thoserisks who cannot find adequate coverage in the admitted marketsegment;
• Recent passage of federal legislation that has streamlined thereporting and collection of taxes and licensing; and
• A growing and ever-changing economy that as a byproductgenerates emerging risks, growing catastrophe exposures, anda constantly churning stream of risks that are unique or haveelevated risk exposures, all of which are the bread and butter ofour industry.

Moynihan: How do you see Flood insurance evolving overthe next few years? I’d love your opinion as to what we’ll see, interms of privatization and what it will take to getthere.

Hine: The Surplus Lines market has a history of innovationand, in the case of Flood, stepping in to provide additionalcapacity. I am no expert on underwriting Flood insurance, but I doknow that if there are underwriting opportunities the Surplus Linesmarket will be able to provide consumers with options. We havestrongly supported legislation that makes it clear to lenders thatthey can accept private Flood insurance from the Surplus Linesmarket, which is not new, but a clarification. That legislationencourages some competition and makes private market solutionsavailable to consumers who have unique Flood risks.

Moynihan: As David Leonard assumes the title of NAPSLOpresident, what advice would you offer him?

Hine: I have had the pleasure of working with Dave on theEducation Committee when he first joined the board. He is one ofthe brightest, most articulate, and well-grounded individuals Ihave ever worked with. We made a lot of progress on the Educationinitiatives when we were together as co-chairs of thatcommittee.

In my mind, giving him advice would be the student advising theteacher. Having said that, I think the most important factor in asuccessful year is the relationship you have with the ExecutiveDirector. Trust and respect for each other allow you to explore newopportunities and be candid in your communications, which ends upwith much better decision making.

Dave needs to keep the accelerator pressed firmly to the floorand to remember our plan on the Education Committee to beaggressive with our agenda until someone says “stop.”

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