Opening Event
The Conference opened with a slide presentation of the beautiful state of Colorado and a tribute to Katherine Lee Bates who composed America the Beautiful after a visit to Pikes Peak It was followed by an historical overview of the Western States Conferences by Don Greene, the first of which was held in Las Vegas in 1969.

Lou Mastos discussed the need for a model surplus line law, Les Lathrop provided an analysis of existing surplus line laws, and Erwin Mesher suggested "white lists" be published in the trade journals. Greene challenged the attendees to consider the possibility of changes. Perhaps alien trusts funds should be related to the amount of business written; company domiciles with secrecy rules should allow insurance regulators a waiver in order to access and analyze company information; lets encourage the surplus line industry to be proactive in assisting State and Federal Regulators and Investigators in their effort to stop the bad guys. Greene feels the "surplus line industry will flourish if we continue pushing for higher standards'

Insurance Commissioners Panel Discussion
There was a panel discussion among the attendees and insurance commissioners-Joanne Hill of Colorado, James Brown of Louisiana, William McCartney of Nebraska and David J. Walsh from Alaska.

Hill said our focus should be on "solvency" issues, "we can't cut rates and survive in tough markets, the regulators and the industry can and should work together to ensure financial security."

Brown feels the surplus line market place is a necessary adjunct to the insurance industry and the insurance regulators "should be a help not a hindrance and work with the market place."

McCartney indicates that the surplus lines market place should stay out of non-traditional business, for example personal fines. To do otherwise will result in additional regulation which may burden the, latitude needed in the industry. Walsh stated that 'regulators are beginning to realize that a cooperative relationship with the market place is important for the protection of insureds.'

Hank Haldeman asked the commissioners to comment on the impact that tort liability has on the reluctance of the insurance industry to provide regulators with information which can help them to investigate fraudulent activities and enforce the law. The commissioners collectively answered that the law should be changed to provide protection for those individuals and organizations who posses the needed information. They also indicated that the Surplus Lines Associations in the Country deserve a great deal of credit for the timely and definitive information they provide to the authorities.,

The Lloyd's Task Force Report 1992 and Lloyd's Business Plan 1993 include important changes:

• Electronic processing will speed quotes and placing
• Policy production will be moved in house, offering immediate access to standard wordings and add flexibility to coverholders.
• Most claims settlements will be merged as a "'one stop claims shop" to expedite the settlements.
• The Lloyd's Business Plan has a target of reducing the annual costs of running Lloyd's by $300 million which will result in a "leaner, fitter organization."
• Lloyd's has reiterated its commitment to U. S. Business and its flexibility will continue to place the customer at the center of its operations.

Middleton concluded indicating while 1990 marks the low point in the markets recent history of profitability, the security behind the Lloyd's Policy, has been tested as never before and has stood firmly behind every policy written. Lloyd's is in a period of radical change which will return the market to profitability for its investors and provide a new level of service and security for its customers.

CEO Panel Discussion
Gene Gopon, Northland Insurance Companies; John Griffin, Landmark Insurance Company AIG Group; Peter Middleton, Lloyd's of London; and Roger Ware, Guaranty National Companies provided a panel discussion on the surplus line industry and its future. The following are their conclusions.

The Surplus Line Industry should not be just a safety valve, but must create and innovate new products for the future. Brokers must encourage the use of admitted paper when possible and innovate new coverage, when needed. Translated this means stay out of personal lines and don't compete with licensed companies.

The excess and surplus industry will continue to come under great scrutiny by the regulators, there will be more control over the business and a desire for more companies to participate in pools, associations, and the like.

Areas of concern, including hurricanes, earthquakes, and environmental pollution liability may heavily burden the insurance industry in the future.

Finally, it's generally accepted that the modus operandi for the insurance industry in the future is to, streamline the methods of operations. We must recognize that much of the public considers insurance to be a 'public utility." We must be proactive in our efforts to enlighten the public, the regulators, the legislators. and each other concerning the role of the Surplus Line Industry, and perpetuate commerce by providing financial security.

It was a great convention, if you missed it try to be there next year.

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