SCOTTSDALE, ARIZ.--The president of the American Association of Managing General Agents said the association is vigorously lobbying state and federal lawmakers to fend off rate and form regulations for the surplus lines market.

Speaking to members here yesterday during the 82nd annual AAMGA meeting, Thomas A. Albrecht noted news reports that "elected officials and regulators are becoming increasingly interested in the prospect of imposing regulations on a market that has enjoyed free market competition in freedom from rate and form."

Currently the rates for surplus lines are not regulated by state insurance departments. Typically the surplus lines market handles business that is seen as highly risky, unusual and in short supply in the standard regulated market.

Mr. Albrecht said the association's government affairs committee has worked "tirelessly this past year to represent our interests on Capitol Hill and in the state legislatures" opposing rate and form regulation.

"Those efforts must continue [for us to remain known as] the market of innovation and specialty," he said, noting that the association is not acting alone in opposing such measures. Mr. Albrecht said the AAMGA has partnered with a number of other prominent agent, broker and company associations to fight such a move.

Over the past year during his term, Mr. Albrecht said the association has also worked to enhance its brand and influence within the marketplace. Members of the AAMGA are recognized as reliable partners no matter what the current soft market has to offer, he said.

Additionally, he mentioned that the association has worked to improve the focus on education and make information more available with a new Web site that averages over 32,000 hits per month.

The AAMGA, Mr. Albrecht related, has raised its profile with many members of the insurance industry, worked to expand the education of its members by increasing the number of those with professional designations, and is on sound financial footing.

"We have greater marketing leverage which is becoming vitally important in today's new world order," Mr. Albrecht said. "The $22.9 billion in premium written by our MGAs is but one example of our hard work in a soft market."

Mr. Albrecht, who is president of Southern Insurance Underwriters in Montgomery, Ala., ends his term at AAMGA today. The new president for a one-year term is Euclid Black, president of Black/White Associates in Henderson, Nev.

Mr. Black said the nonprofit AAMGA has increased its equity from $1.07 million to $1.35 million.

The association and MGAs are well on their way to developing their path to the future with the development of its "Vision 2017" program, an initiative that will mean MGAs will "lead the market rather than be led by it," he remarked.

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AAMGA President Details Fight Against Surplus Lines Regs

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