NU Online News Service, Feb. 26, 10:11 a.m.EST

NAPLES, FLA.—What keeps E&S insurance executives up atnight?

That was the question posed yesterday to a three-member panel atthe National Association of Professional Surplus Lines Offices(NAPSLO) Mid-Year Leadership Forum. The annual event focuses on theleadership challenges of excess and surplus lines industry as wellas that of the association.

The discussion was moderated by Stephen Harvill, president ofCreative Ventures, and included the following panelists:

• Joel Cavaness, Risk Placement Services
• Tony Markel, Markel Corporation
• Kevin Westrope, Westrope

PropertyCasualty360.com was on site covering the show yesterday,and while a full report is forthcoming, here are some of thepanelists’ responses to what has them worried about the future ofexcess and surplus lines.

MODERATOR: What keeps you up at night?

Joel Cavaness: “The next unknown event.”

Kevin Westrope: “Erosion of distribution system”

Tony Markel: “My 68-year-old bladder.”

Below are additional panelist comments made during thediscussion:

Tony Markel:

“As industry, we have to look for coverages and approaches thatanswer societal needs.”

“Retailer consolidation means wholesalers and companies mustlearn to serve more sophisticated, leveraged partners.”

“We guard wholesale relationship zealously.”

“Wholesalers are eyes and ears on the ground for companies whenit comes to product innovation.”

“Movement to admitted side should be done grudgingly.”

Kevin Westrope:

“Wholesale, E&S has become big business, creating a moveaway from the entrepreneurial spirit.”

“Business pressures are creating a move away from distributionsystem to direct-to-retail sources. I’m not sure if that’s a goodthing.”

Joel Cavaness:

“Increased regulatiosn and new rules are made for those whobreak them, but they are a burden for everyone.”

“Wholesalers must continue to innovate and develop new productsto prosper.”

On innovation: “If I own an idea or a product, I’ll get my fairshare.”