WIN Magazine - Spring 2015 - (Page 8)

COVER STORY WILL THE E&S INSURANCE BUSINESS SADDLE UP with STANDARDS? BY CJ KETTERER T Wholesalers Benefit if Partners Implement More Electronic Interchange HE E&S WORLD is a little like the Wild West: Everybody's finding his or her own way to the frontier of business. Living out in the western half of the country, it's not hard to imagine those prospectors in covered wagons westward bound in search of gold. Ours is a business that prizes innovation, specialization, speed to market and product creativity and diversity- traits that have led to valued insurance coverage for everything from London Bridge to Bono's vocal chords. We'd insure Santa's workshop and Cupid's arrow if we could. But those same traits mean we've lagged in creating and adopting standards and data sharing. It's time-past time, in fact-to set aside a smidgen of the independence in favor of the greater good-a greater good that can work to our own good. It's time for more of the people in the E&S business to collaborate to make data standards: * Widely implemented * More commonly used * Available for many more transactions * Highly valuable to all business partners and most of all to our clients It's time to build the virtual connections-the digital wagon trails, call them-that can carry the data with 8 | v i e w t h i s i s s u e a t | the speed we need all over this country and the rest of the E&S world. After all, this is not your father's surplus lines business. In 20 years, it's more than doubled: E&S now represents 13.7 percent of commercial lines direct premiums written in the U.S. as of 2013. That's more than double the 6.1 percent share for 1993, noted Best's 2014 Special Report, U.S. Surplus Lines-Segment Review, produced with the Derek Hughes/ NAPSLO Educational Foundation. But is our industry's use of data standards-those methods of interchange among business partners- keeping pace? Well, no. Part of that is for good reason: Data standards for E&S, where they exist, are fairly new. But the fact is that our business has a great number of information silos-systems and automations that work well, but only within segments of the overall business. One colleague commented to me recently how automation in E&S is so often limited to only a portion of a workflow or by providing a solution for only a single trading partner. It's time to change. The industry's organization to develop standards together-the E&S Joint Working Group (ESJWG) sponsored by AAMGA, NAPSLO, the Agents Council for Technology and ACORD-is well established. But we are short of participation. What we need most of all are people and passion to develop and implement standards. We have cut a number of paths across the frontier, which leads me to believe we can replicate that effort for other business needs. Let me take a look back at the recent history of ESJWG, a group that's flown under the radar of many in the business. Since 2011, a core group of volunteer leaders has been updating interface capabilities for the E&S business, aiming for greater interoperability among partners. Here's what these volunteers have already accomplished: RETAIL AGENT-GENERAL AGENT SUBGROUP Chair: Tate Tooley, AAMGA member, Bloss & Dillard. The subgroup works on ways for MGAs to better support their retail agent business partners who bring them risks. Accomplishments: * Created roadmap for MGAs to develop websites for online access for agents. * Provided proof of concept for passing data from agents' management system to MGA system. Action items: * Calling on business partners in E&S to implement standards.

Table of Contents for the Digital Edition of WIN Magazine - Spring 2015

Cover Story: Will the Excess and Surplus Lines Insurance Business Saddle Up with Standards? By CJ Ketterer
Digital Maturity—or Extinction: Your Survival Now Depends on Digital Transformation By Scott Klososky and Corey White
Emerging Trends: The Technology Side By Greg Ricker, CPCU
Emerging Trends in the Property Insurance Market By Ralph Sabbagh, ASLI
Underwriting the Exposures of Business Operations: The Impact of Tenant Leases By Craig A. Mathre, CPCU, CLU, CIC, CRM, ASLI, RPLU, AU, AIC, ARM, AAM
Emerging Risks: Brain Research By Dr. Achim Regenauer
Millennials: How Well You Attract and Keep Them Could Be Your Competitive Advantage By Teresa Vaughn, SPHR
Volcanoes, Hurricanes, Tropical Storms and Floods: Perils and Exposures in Paradise By Sharon K. Lee
“Empowering the Wholesale Nation”: AAMGA Annual Meeting Registration and Room Block Are Now Open
Index of Advertisers

WIN Magazine - Spring 2015