AAMGA Selects Desert Backdrop for ‘Diamond Jubilee’

This year the American Association of Managing General Agents (AAMGA) will celebrate its 75th Anniversary with a Diamond Jubilee, to be held May 20-24 in Palm, Desert, Calif.

“The Desert Springs Marriott Resort & Spa is just a great place for the convention,” said Baron Garcia, whose task it has been, as AAMGA’s president-elect, to help organize events for the upcoming meeting. He added that perhaps the largest crowd AAMGA has had in the past five years is expected to attend.

Besides marking this important milestone, the gathering promises to be special for a number of other reasons, perhaps most importantly because of the current state of the marketplace. In certain areas of the country, a turn has been noted, meaning that prices are firming up, and in some cases, insurance companies are restricting the classes of business made available to wholesalers.

“The market seemed to turn the moment I took office last May,” said AAMGA 2000-2001 President Leonard T. LoVullo, president of LoVullo Associates Inc. in Buffalo, N.Y. “All MGAs have had to adjust their way of doing business almost overnight. Personally, our business is realizing growth and success. Throughout the country, MGAs are experiencing the highs and lows of this phenomenon, which has not occurred in 15 years. We expect it to continue at least through 2002.”

“There’s a need to interact with each other—companies and wholesalers—and make sure we’re both on the same page,” Garcia, the president of Oklahoma General Agency in Oklahoma City, noted. “I think that’s why the attendance of this year’s annual meeting seems to be up—if nothing else because of the change in the marketplace.”

LoVullo commented on some of the major highlights and accomplishments of the AAMGA during his year as the association’s president. First, the AAMGA membership approved a proposal to restructure the Board of Directors. The revision allows the vice president to serve a three-year term rather than a two-year term. secondly, a strategic plan, providing long-term preparation for the membership, was created.

However, LoVullo said that the “most significant accomplishment was the creation of an ad hoc committee last November to examine the market for an association management firm. Little did we know at that time that our current management firm was to close its doors in March 2001. We were able to respond quickly and decisively when we received the news in early January, thanks to the efforts of Bernie Heinze, past presidents Tom Rogan and Wes Duesenberg, and president-elect Baron Garcia.”

One important resource for the association is the AAMGA University. Notable recent accomplishments have been the expansion of University Weekend programs to two sessions in 2000 and three in 2001; and the offering of courses in conjunction with AAMGA’s 2001 Automation Conference.

“The University has a responsibility to our members to provide quality educational programs in a variety of formats,” said Chris Behymer, AAMGA University director of education. “We will continue working towards achieving this goal by discussing these needs on a regular basis. In spite of the changing market, some things never change—and this is one of them.”

In addition, efforts have been undertaken to ensure that university course offerings are especially time-sensitive. One such program, “Underwriting in the Hard Market,” is a panel discussion which will take place on May 20 at the 2001 Annual Meeting.

When he assumed office a year ago, LoVullo stated that one of his biggest priorities would be to maintain and build upon the relationships AAMGA had already forged with other associations. Accordingly, the lines of communication have continued to become more open with the National Association of Professional Surplus Lines Offices (NAPSLO) Ltd. In recent months, several AAMGA leaders, including LoVullo and Garcia, met with their NAPSLO counterparts in Richmond, Va., to discuss areas in which the two organizations might work together.

Another of LoVullo’s many achievements has been getting AAMGA’s Under Forty Organization (UFO) more active. Most UFO members are sons or daughters of current office owners. These offspring are now coming into their own and taking some management control of general agencies.

“Our UFO had almost 20 members involved in committee work,” LoVullo said. “This overwhelming involvement will prepare them for future Board of Directors positions. As a matter of fact, Fran Johnson, the current UFO chairman, will be the first UFO representative to serve on the Board of Directors.”

“I began in the business in 1975 as an SOB (son of the boss),” LoVullo continued. “I understand the frustrations and rewards of working in a family business, and of being a young person in this business trying to fit in and understand. I want to offer encouragement to our young members because I think this is a wonderful business with unlimited opportunities.”

The AAMGA Annual Meeting will also live up to its reputation as a venue for high caliber speakers and entertainment. Scheduled to address attendees this year are former astronaut Buzz Aldrin and country chart topper Naomi Judd. Those attending the final evening’s gala dinner will be serenaded by singer/songwriter Vince Gill.

But of course, as LoVullo has noted, the keynote of the annual meeting is “business enhancement.”

Reflecting back on the past year, LoVullo concluded, “I would like to emphasize how much I enjoyed serving on our current Board of Directors. Each individual gave unselfishly and always placed the interests of AAMGA first. Every decision we made helped make AAMGA a better organization, and I will forever be grateful to them.”

Topics Excess Surplus Insurance Wholesale