The board of directors of the American Association of Managing General Agents includes (from left to right) first row: Don Penniall, zone vice president; Paul Davis, past president; Jim Roe, immediate past president; Len LoVullo, president; Baron Garcia, president-elect. Second row: Rob Giles, director; Bob Schacher, zone vice president; George Shaffer, director; Tom Albrecht, director.
"I don't plan to try and reinvent the wheel," says Leonard T. LoVullo, CIW, who becomes president of the American Association of Managing General Agents this month. "But there are a few areas that are very dear to me and that I want to emphasize."
LoVullo, who is president of LoVullo Associates, Inc., CMGA, Buffalo, New York, says he intends to build on the strong programs established by AAMGA. He cites four areas that will receive extra attention during his year as president:
The UFO or Under Forty Organization. "I'm really fond of this group," LoVullo says. "These are the people who provide the energy and will be the leaders of the future. My job is to make sure at least one UFO is in each committee so they become more familiar with the AAMGA decision-making process."
AAMGA University. "I want to do my best to promote the whole idea of the university and the importance of education and professionalism. We want to get the best value out of the university. We've made an agreement with the National Association of Professional Surplus Lines Offices (NAPSLO) under which their members can attend designated university courses."
Automation. "This really is a huge area. Our Automation Committee used to be just four or five people. Now we need a group just to deal with the Internet and its effect on and implications for MGAs. We have an automation seminar each year, and I want to give that as much attention as possible. We'll also be working with vendors to try and increase interest."
Legislation. "NAPSLO is very much involved in deregulation, and we'll be working with them on that issue. We don't really know what effect deregulation will have or what direction it will take. Our goal is to make certain that deregulation is fair to us. We want a level playing field. The tremendous amount of paperwork that is required from MGAs has to be addressed."
LoVullo says that AAMGA is concerned that with one segment of the business nearly overwhelmed by paper, new competitors could enter free of such encumbrances. That would put MGAs at a competitive disadvantage both in terms of the cost of compliance with current paperwork requirements and the time it takes to meet those requirements. In the rush toward deregulation, LoVullo says, some states are passing legislation without being completely informed of its effect.
Another overriding concern for the president-elect is to relay the message that members of the AAMGA are highly professional. "The term 'managing general agent' is used very loosely in the industry," LoVullo says. "Some people calling themselves MGAs have been involved in the downfall of companies. But it's not us. We have to inform regulators and legislators about who we are and how we operate. We're a very legitimate organization that is entering its 75th year of existence."
LoVullo says there is evidence that the market is starting to turn. "More than 90% of regulators have not experienced a hard market," he says. "Somebody is going to be blamed when constituents can't get coverage or experience huge rate increases. It's important for us to inform them about the way we work and the way markets work so that we won't be the fall guys if there are market dislocations."
If there is a hard market, it won't be like the mid-1980s, LoVullo says.
"The systems are totally different than in 1985," he says. "Files are bar coded. The handling of paper is totally different, and training is different. In many ways, we're already prepared due to advances in technology. "Still, if there is a hard market, a lot of MGAs will have to learn how to deal with it, because it's something they've never actually seen."
LoVullo believes he is very fortunate to serve as president of AAMGA.
"AAMGA has been a major part of my life," he says. "My dad joined in 1972 and was on the board of directors in the 1980s. I've been involved since 1978. My best friends in the world are in AAMGA."
LoVullo lost his first bid to be president in 1995, "But," he says, "I picked myself up and said, 'Darn, I'm going to try again.' It's something I really wanted."
He attributes his ability to serve as the 2000-2001 president to his staff at LoVullo & Associates. "This past year, I've probably spent one day a week on AAMGA," LoVullo says. "I anticipate I will need to spend two to two-and-a-half days a week in the upcoming year. Not every president has the luxury of having a strong staff who allows me to handle this commitment." *
©COPYRIGHT: The Rough Notes Magazine, 2000