Posted on 15 May 2013 by Neilson
The board of directors of the American Association of Managing General Agents (AAMGA) announced it has voted to expand membership to bring all wholesale insurance practitioners who meet membership requirements under a single umbrella. The board made the announcement to members on May 10. Members will vote on bylaw changes that allow for the proposed membership expansion, and include the Association's new name: the American Association of Wholesale Insurance Professionals.
In addition to managing general agents, national and international insurance companies, business services and state stamping offices, the proposal would add qualifying brokers, managing general underwriters, program administrators, program managers, aggregators and other insurance entities operating on a wholesale basis to the Association.
"We will become a stronger Association that serves as the single, reliable source for the entire wholesale distribution market and, in the process, yield ongoing and long-term benefits and value to existing and future members," said R.C. Chaffin, AAMGA board president. "The board encourages members to vote in favor of these new opportunities once the bylaw amendments are sent out in June."
The proposed change follows a two-year strategic review instituted by the board that highlighted opportunities for the Association, and its members, to better adapt to a changing insurance market.
"The wholesale insurance market has undergone dramatic changes in the last decade," said Bernd G. Heinze, Esq., AAMGA executive director. "We've seen an expansion of the wholesale distribution system with new market participants and an increase by those professionals into more specialty lines of business. We want our Association to be ahead of the changes. The Board believes it is better for us to lead rather than follow, a fact that has always been core to our identity."
Noting three other membership expansions in the Association's 87-year history, Heinze said the proposed changes will add value to the Association's membership by better representing the realities of the wholesale insurance market, strengthening the Association with increased membership and expanding business and educational opportunities.
Under the proposed changes, membership standards will include board approval, required minimums for written annual premium, time spent transacting and writing business on a wholesale basis, three recommendations from existing members and compliance with the Code of Ethics. The board proposal will be discussed at the AAMGA annual meeting, May 19-22, 2013 in New Orleans. Balloting on bylaw amendments by the members will follow.
The AAMGA is the international, professional trade Association representing the wholesale insurance marketplace. Currently, members in 50 states write a combined $20.6 billion in admitted and excess and surplus lines annual premium domestically and internationally. Other members include U.S. and international risk bearing and non-risk bearing members (insurance, reinsurance, retrocessional, captive, Lloyd's and London market brokers), business services members and each of the state surplus and stamping line offices.