The American Association of Managing General Agents (AAMGA) and the National Association of Professional Surplus Lines Offices Ltd. (NAPSLO) have released further details on a possible merger into one larger organization.
What is the timeline?
If the efforts of the merger committee are favorable, membership-wide votes of the AAMGA and NAPSLO will be conducted in mid-2017. An announcement of the proposal for the membership-wide vote would be sent at least 60 days in advance.
What will happen to the major meetings for both organizations?
The merger committee will evaluate the three existing meetings between the AAMGA and NAPSLO and will consider refining them to two meetings that will more effectively meet the needs of members. The benefit to members is the reduction in the number of events for a largely congruent group of attendees, which is anticipated to generate significant indirect cost savings for members while providing attendees effective forums focused on both delegated underwriting and transactional brokerage.
How many members cross over between associations?
Currently, 77 percent of AAMGA members also belong to NAPSLO. Forty-eight percent of NAPSLO voting members also belong to the AAMGA.
What is the current voting membership composition of NAPSLO and AAMGA?
The AAMGA's voting membership is comprised of:
- 253 (68 percent) wholesale insurance members.
- 119 (32 percent) associate members (insurance companies and other risk bearing entities).
NAPSLO's voting membership is comprised of:
- 370 (77 percent) wholesale broker/agent members.
- 108 (23%) company/underwriting manager members (insurance companies and other risk bearing entities).
What is the threshold for the membership vote on the consolidation proposal?
AAMGA: 75 percent of votes cast. NAPSLO: two-thirds of votes cast.
How will the voting process work?
For the AAMGA, wholesale insurance members (wholesale managing general agents) and associate members (insurers) are eligible to cast one vote per organization, regardless as to the number of employees or office locations. For NAPSLO, each wholesale broker/agent member and company/underwriting manager member will have one vote.
What happens if the consolidation does not occur?
If the consolidation does not occur, NAPSLO will continue offering member services in networking, education, talent recruiting and development, and advocacy on behalf of its members. The AAMGA would also continue its member services and is concurrently exploring other options in addition to consolidation, which are outlined in a Nov. 21 message.
Look to PropertyCasualty360.com for further developments on the proposed merger.