For 87 years, the American Association of Managing GeneralAgents (AAMGA) has nurtured a reputation and culture based onintegrity, professionalism and strict membership standards. Thesecharacteristics have distinguished the association and served as asource of pride for its members.

In May, the AAMGA board of directors proposed bylaw changes to broaden theassociation's membership base to represent the entire wholesaleinsurance market. The ensuing dialogue—with our current members andthe industry as a whole—has centered on how we will continue todifferentiate ourselves from other industry associations andmaintain our unique culture.

We have emphasized that the respected culture of AAMGA willremain intact, from the relationship-oriented atmosphere of ourannual meetings to the integrity and professionalism that definesus. We have shared our plans to manage growth methodically bymaintaining membership requirements such as underwriting or bindingauthority, minimum years in business, minimum premiums written andboard approval.

The goal of the board proposal is to enhance the current missionof our association: to provide members with expanded networkingopportunities, to offer a richer educational platform through theAAMGAUniversity, and to continue to advocate for the importance ofwholesale insurance to legislators, regulators and courts, bothdomestically and in the United Kingdom. In fact, we have never beenrelied on more for our industry guidance.

We believe a broader membership base will better represent theentire wholesale insurance marketplace and afford members morediverse and relevant programs, tools, resources and benefits, whilelending greater credibility and strength to the entire market.

During discussions with members over the last 6 weeks, we foundmany support the proposed membership changes, but there has beenless support for a change to the association's name, as originallyproposed. We listened and decided not to pursue a name change atthis time. We want the focus to be on the key issue, which isexpanding our membership base to better reflect the marketrealities of today.

These changing realities were captured by outgoing presidentR.C. Chaffin at our 2013annual meeting when he asked attendees how many were doingbusiness the same way they did 10 years ago. Not one hand wasraised. Indeed, increasing specialization in the wholesaledistribution channel has changed how MGAs do business, while addingprogram administrators, managing general underwriters, aggregators,brokers and other professionals who operate similarly to MGAs.Simultaneously, we have seen a consolidation trend separately amongMGAs and carriers, reducing the number of corporateparticipants.

The board believes the best course for AAMGA is to widen ourmembership base to include other wholesale distributors. Bringingmore professionals under a single umbrella will enhance and sustainour association while increasing our value to members and theindustry.

There are historical precedents. In 1926, we were born as theAssociation of Fire Insurance General Agents. We became theAmerican Association of Insurance General Agents in 1930 and,finally, the AAMGA in 1948. During each change, we added new marketparticipants, refined our focus, and changed membership rules andopportunities for the Association mirrored those the marketafforded.

Today we believe membership rules should again be modified toreflect market changes—enhancements we believe will help AAMGAbring more value to members and benefit the entire wholesaleinsurance marketplace. The final decision rests with our members,who will receive ballots on July 26.