President's Message

Ten years ago, the "Idea" was beginning to take shape with actual plans and commitments. The initial work was underway, the paperwork was being done, the "Idea" was being committed to a written plan and gaining momentum. Since then, the "Idea" has flourished and produced some spectacular results. Today the "Idea" is known as the Derek Hughes/NAPSLO Educational Foundation.

The Foundation Board and I have witnessed these spectacular results that were only dreams back in the beginning. I would like to recap several of these accomplishments for the 90's.

ASLI - In 1999 we conferred the Associate in Surplus Lines Insurance designation to another 85 students. This class brought the total designees to over 350 in just three short years. The course work is being used in college insurance programs and in parts of NAPSLO's E&S School. The textbooks and workbooks are virtually the only compendium of material on the excess and surplus lines insurance business. This designation was conceived at the very beginning of the Foundation and took over five years to develop. The effort required a cast of thousands . . . well, maybe hundreds, but you catch my drift. This was a major undertaking and occupied front burner for the Board from the beginning. Revisions to the material are already underway by the Insurance Institute of America to improve and update the course work.

Surplus Lines Review - With the assistance of A.M. Best Company the first detailed look at the surplus lines industry from a solvency standpoint was published in 1994. The study was commissioned by the Foundation to find out just how good (or bad) the E&S insurers were doing financially over the past 25 years compared to the standard lines property and casualty insurance companies. The Board wanted an independent analysis that would once and for all settle the issue that the E&S market was not the black market that seemingly everyone thought. The findings surprised even the staff at Best's because it was determined that the Excess & Surplus segment of the market place since 1969 had a better solvency record than that of the standard lines market. This was certainly contrary to the generally held opinion of the E&S market. The review continues to be funded by the Foundation each year with additional study done on various segments of the E&S market that are current topics of note.

Scholarships and Grants - Perhaps the most heartening efforts of the Foundation have been in the scholarships and grants area. In 1994, Scottsdale Insurance Company committed funds in honor of Rollie Wiegers' retirement to fund a scholarship program for college students pursuing an insurance related degree. In 1998 the first six scholarships were awarded. I served on the selection committee and it was very difficult to pare down a list of 35 applicants. We labored hard over the list of very qualified individuals, but we only had so much money. In 1999 another six scholarships were funded and again, the selection committee's biggest frustration was not being able to fulfill the demand when there very deserving students that could use the money. Two developments have helped the Board to ease this constraint. Scottsdale Insurance Company agents were solicited in early 1999 for additional contributions to the Wiegers fund and this brought in $32,500. The other was the formation of an additional scholarship fund in memory of Kevin McLaughlin. This fund targets students more on the financial need side that are working toward an insurance related degree. With the establishment of this fund and the additional funds contributed, the Board authorized up to ten scholarships to be presented for the 2000-01 school year.

The Foundation also formalized its' grant application process in 1999. The grant program is interested in funding research on insurance topics. It is intended for use by insurance students on a post graduate level. While this is the primary focus, it is not the sole area that the Scholarship and Grant Committee will entertain. The Board has funded two projects and one of project is still underway.

Derek Hughes/NAPSLO Educational Foundation Lecture Series - At the 1998 NAPSLO annual convention, the first Lecture Series guest speaker was Elizabeth Dole. The program was very well attended and an excellent way to open the convention. President George Bush was the guest speaker at the 25th NAPSLO Annual Convention in New York. Again, the room had standing room only and President Bush was a big hit with the convention attendees. The Foundation will continue to cosponsor this effort with NAPSLO.

As we close out the 90's and look to the new millennium, we are faced with many new challenges: deregulation, merger and acquisitions, banks in insurance and on and on. How will it all effect the E&S insurance industry, one can only speculate. With help from a financially secure Foundation we can educate people about the viability of a misunderstood industry. We can help educate new entrants to the insurance industry. We can fund research on current issues to shed additional light on what effect they will have. This can only happen if we have adequate funding.

Joseph D. Timmons, CPCU, ASLI
President, Derek Hughes/NAPSLO Educational Foundation